Free Essay

Usa Today

In: Business and Management

Submitted By jayks
Words 1620
Pages 7
USA Today by Gannett Company
On 20th April 1982 - announced the first copies of USA Today
In 1985 - became the second largest newspaper in the America
In 17th April 1995 - Launced USA Today Online
In 2000 - The paper redesign
In 2009 - Newspaper have closed shop or reduced publications day and adapt to online only
Norfatahiyah Bt Md Sulhaimi
1110937
USA Today
Become a more serious newspaper with improved journalism
Raising public awareness and move into profitability
USAToday.com
Readers interacted with the journalist and given opportunity to voice their opinion
Continuous strategy of marketing innovation
USA Today
Product Innovation
Promotional Innovation
Distribution Innovation
USAToday.com
Added blogs
Really Simple Syndication(RSS)
Pod casting
No
Demand for the newspaper will decrease because customer just get news from USAToday.com
Strength
Weaknesses
Opportunities
Threats
Huge media conglomerate with Gannett
Gannett's capabilities in high-tech graphic design
High fixed costs
Weak profit margin
Increasing numbers of white-collar workers
Failure of competition to innovate and innovate rapidly
Online news threaten to cannibalize printed news
Competition from other newspaper, national and local
Fast delivery the news
Design through customer preference
Limitation when it saturated
Move to USA Today Online
Lose readers of the population ages over the next 10 to 30 years
Economic factor such as higher newsprint costs

https://www.scribd.com/doc/260385947/USA-TODAY-INNOVATION-IN-AN-EVOLVING-INDUSTRY

https://www.scribd.com/doc/56264278/USA-Today-Case-Doc#scribd

CASE 1 USA TODAY: INNOVATION IN AN EVOLVING INDUSTRY 1. THE CASE’S SITUATION ANALYSIS 2.1 Case Summary

USA Today was first launched in 1982 as America’s first national general interest daily newspaper by Allen H. Neuharth, former Chairman of Gannett Co. Inc., back to 1989, As of today, Gannett is a global information conglomerate that publishes 82 daily and 700 non daily newspapers and affiliated websites, together with 23 broadcast television stations in operations reaching 18.2% of the U.S population. Gannett is currently the largest U.S. newspaper group in terms of circulation with its combined circulation (including USA Today) is 11.6 million readers every weekday and 12 million readers every Sunday. Apart from that, Gannett’s has taken a quarter of the total U.S. Internet audience which roughly 52 million unique visitors per month.

In early years when USA Today was first debuted back to 1982, it achieved instant success due to its innovative format where it is written in shorter pieces and sprinkled with eye catching colorful photos, graph and charts, specifically designed for the needs of sound-byte generation/TV generation, and also the Middle America – young, well-educated Americans who were on the move and cared about current events. Its first daily issue was 155,000 copies and after a month its circulation hit 362,879 copies and after seven month, it reached 1,000,000 marks. Its readers are mostly professionals, usually manages, about 40 years old, well educated, with an income of about $60,000 a year, together with news or sports junkie.

USA Today’s mission statement was to make its news enlightening and enjoyable to the public, informative to the national leaders, and attractive to the advertisers. Each issues is presented in four sections that cover News, Money, Life and Sports. Its motto’s ‘An economy of words, A wealth of information’ suits best for its focus on brevity and clarity, short sentences and short words in its reporting despite critics that labeled USA Today as junk food journalism for its terse, brash writing style and short coverage of complex issues.

In spite of the growing trend in newspaper circulation and revenue, USA Today is faced with challenges to turn into profitability. By late 1985, circulation surpassed 1.4 million but cost also double its original price per issue. For the first ten years, USA Today incurred a loss of $600 million. Profit was only achieved by 1993 of $5 million and doubled to $10 million the following year.

Apart from growing cost, USA Today was also faced with direct competition from other national newspaper such as the Wall Street Journal, the New York Times, cable networks, nationally syndicated terrestrial and satellite radio providers such as Sirius/XM, internet sites such as Yahoo! And Google, and blogs such as Huffington Post. The competitors such as the Wall Street Journal are also targeting business readers and their product lines include newspapers, newswires, magazines, websites, indexes, television and radio. They also have strategic alliances with other information companies such as CNBC, Reuters and Smart Money.

Global economic woes had also affected newspaper’s revenue including USA Today as companies are cutting down their advertisement budget particularly in the automotive, retail and employment sectors. Technology advancement has also changed the way people access information. They now have variety of ways to get latest news i.e. through print media, 24 hours television networks, news websites, mobile devices, search engines, blogs and social media sites that provide up-to-minutes news.

As a print media, USA Today has to think hard how to sustain itself in the mainstream of media industry. Larry Kramer as the new CEO of USA Today is responsible to chart and implement a corporate strategy to focus on digital media, starting with re-launch of USA Today’s online, mobile and tablet product. USA Today must continue to use various value-added services to further enhance distribution of its proprietary content and continued product differentiation to remain successful. In the face of competition in both print and digital markets, the future of USA Today depends on its ability to continue to innovate and adapt its marketing strategies to changing needs of the market.

2.2 Strength-Weakness-Opportunities-Threats (SWOT) Analysis 2.3.1 Strength

* Number one print newspaper in the United States, with over 1.8 million daily papers in circulation. * USAToday.com is Internet’s top sites for on-demand news and information. It allows readers to receive up-to the moment’s news with colorful visuals a crisp audio, weather forecasts, travel information and access to the paper archive from the ‘80s to today information. * Increased online audience – almost 24 million unique visitors per month, with a double-digit growth in unique visitors, visits, and page views per month. * Unique, innovative format: written in shorter pieces, using colorful photos chart and graphs, practical columns and at-a-glance boxes. The paper communicates with readers clearly and directly and it also faster to read and easy to handle thanks to its slimmer pages. * A more serious, more responsible news-oriented product by focusing more sharply on hard news rather than soft features. * Value added features – “1-800 and 1-900 “hot-line” numbers are incorporated in the paper so that readers can call for expert information on financial planning, college admissions, minority business development, taxes and other subjects. * A 50-inch width design makes the paper easier to read and clear in design, the pages were slimmer and easier to handle, especially for travelers in tight spaces like airplanes, trains, buses, and also more readily fit into briefcases. * Innovative promotional activities such as the “BusCapade” & “JetCapade” promotion tour and readerships programs for college students, which help raising public awareness of the paper. * The paper offers USA Today International, which is available in more than ninety countries in Western Europe, the Middle East, North Africa, and Asia. * Advertising-friendly – accept regional advertising, giving local advertisers increased flexibility, offering front page advertising space, allow advertisers to transmit copy electronically 24 hours per day etc. * USA Today is widely distributed via newsstand retailers, large grocery store chains, bookstores, coin-operated vending machines, and directly to the consumer through home delivery. Complementary distribution occurs primarily in hotels, airport terminals, and restaurants and at the college campuses and it’s also available in e-formats from the web page, mobile phone access and e-mails updates. * Brand Extensions – three USA Today Travel Zone retail locations in airport terminals in late 2008 and launching of USA Today Live.

2.3.2 Weaknesses

Case 1 Brief:
USA Today is a national American daily middle-market newspaper published by Gannett Company. It was founded by Allen H. Neuharth, who until 1989 was chairman of Gannett Co., Inc.
In 1980, Allen Neuharth met with task force members to discuss his vision for producing and marketing a unique nationally distributed daily newspaper. Allen Newharth who was a chairman of Gannett was ready to take advantage of two opportunities includes: 1) An increasingly short attention span among a generation nurtured on television, and 2) a growing hunger for more information.
Gannett responded to this opportunity by launching USA Today in 1982 as an information source that would provide more news about more subjects in less time. Gannett research suggested that USA Today should target achievement oriented men in professional managerial position. So USA Today was targeted to middle America-young, well-educated Americans who care about current events. Compared to other newspaper USA Today was truly unique. It achieved rapid success due to its innovative format like written in shorter pieces, colorful photos, grafts and charts. It was designed for the TV generation, the paper was laid out for easy access and quick comprehension by time-pressed readers. In addition to this, Gannett’s research had shown that readers got most of their information from snippets and that they were just interested in sports, movie reviews and health information as they were in traditional news. When they knew that a lot of their readers are not only interested in traditional news, then they introduced the separate sections for News, Money, Life and Sports. Newspaper satisfied several unmet needs and wants. It’s success came from listening to his readers and giving them what they wanted.

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