Case 1.docx - Sofia Lacerda Soares PMBA 8260 Professor...

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Sofia Lacerda Soares PMBA 8260 Professor Benchener Case 1 - USA Today: Innovation in an Evolving Industry 1. What opportunities in the marketing environment did Gannett seize in launching USA Today? How did the company learn about and respond to these opportunities? Answer these same questions for USAToday.com. There were many opportunities Gannett seized in launching USA Today. Firstly, they recognized the trends and the untapped market. The two trends within the industry and of the reading public were an increasingly short attention span among a generation nurtured on television, and a growing hunger for more information. Therefore, their mission statement clearly shows that they aimed to enlighten and be enjoyable to the public, informative to national leaders, and attractive to advertisers. Basically, in the niche market their target customers were achievement-oriented men in professional and managerial positions who were heavy newspaper readers and frequent travelers. In the end, the typical reader turned out to be a professional, usually a manager, about 40 years old, well educated, with an income of about $60,000 a year. The typical reader was also a news or sports junkie. They also innovated their product so that they were an information source that would provide more news about more subjects in less time, instead of dense and long articles. In order to make it easier to digest the information, they made the paper more colorful, with less clusters where the information displayed was clean and clear. In addition to the innovation with the product, they innovated the promotional aspect. At the strat USA Today had difficulty finding advertisers that wanted to pay to display their ads in the paper. What the advertisers were afraid of was that the target customer would not engage and whether the new business proposition the USA Today offered was good. To solve this, USA Today decided to provide 6 months of free space to those who purchased 6 months of paid advertising, calling this the Partnership Plan. Moreover, they were the first paper to display advertisements on the front page. In terms of distribution, USA Today struggled at the start. It printed delayed scores of sports matches and were behind competitors. However, to tackle this they added printed sites all around the US so that the delivery time would improve and information would be more relevant. I found particularly interesting the “BusCapade” promotion tour and “JetCapade” campaign, where they went physically to different areas and presented the paper and showed their unique business proposition. The also relevant technological advancements drastically improved the

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