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Presentation for the NAA. Agenda Challenges The Atlanta Journal-Constitution is facing Our response to those challenges A deep-dive analysis of the status quo The development of a modern, innovative strategy An investment into “niche publications” A high-altitude overview of MundoHispanico.

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Presentation Transcript
Presentation for the naa
Presentation for the NAA

Agenda

  • Challenges The Atlanta Journal-Constitution is facing

  • Our response to those challenges

    • A deep-dive analysis of the status quo

    • The development of a modern, innovative strategy

  • An investment into “niche publications”

  • A high-altitude overview of MundoHispanico

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A difficult landscape for print news
A difficult landscape for print news

  • Most major papers have faced steady, persistentcirculation declines for two decades

  • This trend has been driven by many factors. The most critical are:

    • Proliferation of alternate news sources including cable and the Internet

    • Growth in major cities’ transient populations less concerned with the region

    • Sprawl causing higher commute times and “disconnectedness”

    • Time pressure in increasingly “always-on” lifestyles

  • The key result has been the fragmentation of target customer segments—smaller, more numerous groups with increasingly specific needs and behaviors

  • Moreover, competing media have been better than newspapers at identifying and targeting these specific segments

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Average newspaper circulation has been declining since the 1970s
Average newspaper circulation has been declining since the 1970s

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Source: Newspaper Association of America


The ajc s circulation has declined faster than national average despite a rapidly growing region
The AJC’s circulation has declined faster than national average, despite a rapidly growing region

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Source: Audit Bureau of Circulation; US Census


The atlanta market is challenging fewer atlantans read newspapers
The Atlanta market is challenging; fewer Atlantans read newspapers

Note: Media Audiences-Average: average issue readers for newspapers; average quarter-hour listeners within a specific

Day part for radio; average half-hour viewers within a specific day part for TV and cable

Source: 2003 Scarborough Report

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The ajc s challenge
The AJC’s challenge…… newspapers

  • Historically, the ajc has been a pure “mass” media paper targeted broadly at the entire MSA; as such, we have had less pressing need for feedback or detailed knowledge about our customers

  • We have focused on controlling costs and maximizing ad revenue to maintain cash flow with declining revenue, perhaps at the expense of editorial quality

  • We have also launched a successful Internet play, with outstanding traffic, but the business model is a challenge

  • None of these steps has served to alter the circulation decline; we must take broader actions.

  • The key need is to develop a deeper understanding of target customer segments and to create more focused offerings both in print and online

  • At the same time, we must maintain the strong core – be the key source of news and a powerful vehicle for its delivery

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Strategy development process a number of options were considered
Strategy Development Process—a number of options were considered

Cox Atlanta

Mass AJC

Mass + Target

Local Papers

Custom AJC

Primarily Internet

AJC Google

  • All Cox. All the time.

  • One brand strategy, combining all Cox Atlanta properties for 24/7 Atlanta news, info, and enter-tainment

  • Heavy cross-promotion and cross-selling

  • The media category killer

  • A regional USA Today, where the news product is built on common denomi-nator stories – sex, crime, etc.

  • Free distribution with heavy preprints and optimized zoning

  • A media portfolio company

  • Flagship AJC evolves but remains, augmented with array of print and online products

  • Improved operational flexibility drives greater efficiency and sales effective-ness

  • Cox local papers vs. core AJC

  • Cox creates separate entities and brands to compete with AJC at local level, but leverage AJC presses and admin

  • No content or sales shared

  • Customer-intimate paper

  • Address-specific customi-zation of newspaper content and delivery location

  • Knowledge of customers allows for premium pricing, ads, promotions

  • The online company w/ a paper

  • Print product is an upscale, leisurely supplement to online, which becomes core product for news

  • Maximized customi-zation

  • Highly targeted advertising

  • Improved classified

  • Everything you want re: Atlanta

  • Deep databases have all you need or want to know about Atlanta

  • Data is unique from that available on Google, such that Google links to AJC Google for info

  • Most measured medium, enabling pay-for-performance advertising

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Mass target is the right concept what does this mean for the ajc
Mass+Target is the right concept. What does this mean for the AJC?

  • Research shows more people than ever buy the paper today, but growth in target segments may be better met by other products

  • Continued focus on maintaining and strengthening the mass is well worthwhile; the specific levers in the near-term are:

    • Focus zoning in major core counties

    • Reprioritize what belongs in Zones, Metro and the A section

    • Enhancements to ad-only offering – preprints, inserts

    • Maximize targeted advertising opportunities

  • Launch a portfolio of3-5 new products targeting various market segments

    • A quick-read version of the mass paper, with shorter stories and a tab format

    • A targeted publication for women focused on lifestyle and with heavy ad content

    • An African-American publication that highlights the vibrant community in Atlanta

    • A Spanish-language publication that serves as an advocate for the Hispanic community

    • A sophisticated business publication

  • In addition, the AJC must develop an organization capable of strengthening online classified products and creating new online products

  • This approach will deliver a flexible platform to evolve with and adapt to the ever-changing market

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Customer research revealed six distinct segments
Customer research revealed six distinct segments the AJC?

  • News (23% of the populace): Hard core newsies that want broad, yet detailed coverage; enjoy reading the paper and form the core of the AJC’s subscriber base

  • Restless (13%): Same as “News” in their needs, but currently dissatisfied with experience and seek several alternative sources of news, including other newspapers

  • Lite (26%): The largest segment of Atlanta’s residents; they need much of the same content as those in the News and Restless segments but they want the content condensed and to the point

  • Cultural ID (12%): Want a paper that represents their viewpoint, champions their causes, and reinforces their identification with a particular demographic

  • Utility (13%): Use the paper for coupons, advertisements, and listings

  • Convenience (13%): Will read paper only if it is available exactly when they want it

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There was already an existing market leader….. the AJC?

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We purchased mundohispanico may 2004
We purchased MundoHispanico May 2004 the AJC?

  • Purchase was executed with Lino Dominguez, the founder, owner and proprietor of 25 Years.

  • Dominguez was asked to stay for a 3-year transition period.

  • We installed a director-level executive from the AJC as the General Manager of Mundo, and AJC liaison.

  • We consciously adopted a one-year “hands-off” approach

  • We were deeply respectful of the vast cultural differences between our two organizations.

  • Great efforts were taken to respect the autonomy and identity of the company.

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It has been challenging but rewarding
It has been Challenging but Rewarding….. the AJC?

Benefits

  • Instant market domination of Latino territory sales.

  • Speed to market is much greater than developing a fresh product.

  • Instant addition of a proven master brand to the portfolio.

  • Opportunity for rapid growth.

  • Journalistic values are easier to achieve.

Challenges

  • Growth requires changes. Founders are different than executives.

  • Installation of “outside” management was met with resistance.

  • Street credit demands that the culture remain truly Latino. The AJC culture is far from Latino.

  • Staffing.

  • “Bolt-on” businesses difficult to integrate.

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Growth is a priority
Growth is a priority…… the AJC?

Population growth is outpacing the business

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We must double in size
We must double in size……… the AJC?

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Over the past decade, Mundo’s circulation grew at an explosive rate with the Hispanic community, but, in recent years, it has slowed

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Source: Census; Mundo internal data


Today the market has at least two distinct segments
Today, the market has at least two distinct segments… explosive rate with the Hispanic community, but, in recent years, it has slowed

Mexican

Central American

South American

Puerto Rican

Cuban

All Other

Newer immigrants from Mexico and Central America

More assimilated, well-educated Hispanics

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Source: Population estimates from 2003 Census; Other demographics from 2000 Census


Mundo indexes very high amongst south americans
Mundo indexes very high amongst South Americans explosive rate with the Hispanic community, but, in recent years, it has slowed

* Country percentage of Mundo Readers divided by country percentage of total Hispanic community

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Source: 2003 Census; Mundo 2003 Readership Study


So increasing penetration into the mexican community is by far our greatest opportunity
So, Increasing penetration into the Mexican community is by far our greatest opportunity…

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Source: Mundo Readership Study; Census


Extensive product development lead us to
Extensive product development lead us to far our greatest opportunity…

“Pasos”

Steps to a better life

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A new weekly with timeless useful information for immigrants and newcomers
A new weekly with timeless, useful information for immigrants and newcomers……..

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How to do taxes
How to do taxes….. immigrants and newcomers……..

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Dealing with strange american things like sheetrock
Dealing with strange American things like……. SHEETROCK! immigrants and newcomers……..

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What to know about buying a car
What to know about….. Buying a car. immigrants and newcomers……..

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At the same time we re improving the core
At the same time we’re improving the core immigrants and newcomers……..

  • Mundo needed a bolder, fresher look.

  • The paper hadn’t changed in nearly 10 years.

  • The fledgling website was very low on traffic.

  • Sales were growing, but not nearly keeping pace with the population.

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That was then
That was then…………. immigrants and newcomers……..

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This is now
This is now……….. immigrants and newcomers……..

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Bolder and more engaging
Bolder and more engaging……… immigrants and newcomers……..

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And the website is also being improved
And the website is also being improved….. immigrants and newcomers……..

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For a robust portfolio of hispanic niche products
For a robust portfolio of Hispanic niche products immigrants and newcomers……..

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