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NMG Closes 'Daily Metro' is BD next?
mukiha
#1 Posted : Wednesday, April 22, 2009 11:48:00 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Finally,after months of losses,NMG closed down the Daily Metro last Friday. The paper could not keep up with the Nairobi Star.

Business Daily is also facing the same problem. My vendor stopped ordering the paper last month after the last regular customer stopped buying it.

In the face of global financial crisis,isn't it time this publication was also closed down? Or perhaps a re-think of the marketing strategy?

Same fate might follow NTV and Easy FM....they are also not meeting targets.
Here is an interesting research study for those undertaking MBAs:

NMG survives on the strength of it's flagship newspaper - without it,the company is worthless. The broadcast divisions are loss-makers.....

SGL survives on the strength of it's broadcast division,it's newspaper division is struggling to stay afloat.

Interesting contrast,isn't it?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Gordon Gekko
#2 Posted : Wednesday, April 22, 2009 11:57:00 AM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
I think NMG bought out The Weekly Advertiser and made it Daily Metro? The Weekly Advertiser concept was doing so well (why else did NMG buy it?) so why did they change the formulae?

Since the NMG and SGL are complementary,should they merge?

What about NMG's operations in Ug and Tz,are they struggling too?
Ruchwarsteve
#3 Posted : Wednesday, April 22, 2009 12:00:00 PM
Rank: Member

Joined: 4/8/2009
Posts: 34
Heard that Daily Metro is no more. Kwa nini?

RUCHWARSTEVE -super surfing
mukiha
#4 Posted : Wednesday, April 22, 2009 12:10:00 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Yes; NMG bought the weekly advertiser many years ago. The previous owners were making good money running it as a strictly advertising paper with no stories.

Then NMG took it over and started running stories....advertising revenue went down,staff costs went up (reporters,editors etc) and in a few moths,it became a loss-maker.

The kept running it that way for a few years and then Pat Quarcoo started his Nairobi Star. Initially this was printed at the NMG printing press. They watched the print runs and realised there is money to be made.

In one week,they changed the Weekly Advertiser into the Daily Metro -same editors,same reporters plus some additions. Costs went higher,circulation came tumbling down..and with it advertising revenue disappeared all together.

And before they knoew it,Quarcoo bought himself a printing press....thus the printing revenue from the Star also dried up.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
xtina
#5 Posted : Wednesday, April 22, 2009 12:12:00 PM
Rank: Member

Joined: 6/26/2008
Posts: 401
Jammo wanted to launch an investment magazine. Is he reading this? I mean about the BD situation? Competition is struggling....

If that boy don't love you by now,then he never will-Ciara
mukiha
#6 Posted : Wednesday, April 22, 2009 12:14:00 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Wacha mchezo!

I posted an answer to your question 12 minutes BEFORE you asked it.

Kwani huangalii current threads?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
mukiha
#7 Posted : Wednesday, April 22, 2009 12:28:00 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Apparently,BD was started when NMG heard that South Africa's Business Day was planning to launch in Kenya....a strategic move,they said,to make life difficult for the South Africans. Now guess whose life is more difficult?

Nonetheless,I think I can turn that paper around!!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Wendz
#8 Posted : Wednesday, April 22, 2009 12:39:00 PM
Rank: Elder

Joined: 6/19/2008
Posts: 4,268
@Mukiha

I think they had the wrong target group or wrong material for their target group. For 20bob it targeted the low income earners and the content therein,one would be forgiven to think it was intended for the group not looking for anything serious in the newspaper. Now,the low earner will not waste his precious 20bob for useless info. he'd rather stand at the vendor's kiosk for an hour to read the DN or TS instead. If you now add color on all pages,you are just adding more cost into it which does not match the returns.

They just jumped into price war with the NS without proper strategy wit price being the only competitive advantage.

Problem with NMG is that they are reactors.
Some deals are like glass. Sometimes it's better to leave them broken than try to hurt yourself putting it back together.
sheep
#9 Posted : Wednesday, April 22, 2009 1:11:00 PM
Rank: Veteran

Joined: 7/24/2008
Posts: 781
With a p/e of 14 its still one of the most overvalued counters on the nse.
The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
mukiha
#10 Posted : Wednesday, April 22, 2009 1:14:00 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
First step is to totally divorce BD from the [Daily] Nation....remove its office from Nation Centre to some leased premises,give it separate admin staff,etc. Then give some seed capital let it swim alone.

If it can survive,well and good. if it cannot,still well and good!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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