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The People newspaper now free
madollar
#1 Posted : Tuesday, July 01, 2014 11:43:47 AM
Rank: Veteran


Joined: 11/17/2009
Posts: 2,038
Location: GA
Interesting but risky strategy by ian fernandez regarding the people newspaper now free to depend solely on revenue from advertising the risky part is what happens if advertisers do not respond also how will they implement the free part given that newspaper vendors have to get their cut
muganda
#2 Posted : Tuesday, July 01, 2014 6:07:45 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
Would you read People Daily for free?

Ian Fernandes, now CEO, and able aide Sharleen Samat, did decamp to Mediamax from NMG.

Citizen just dominates TV with 48%, then NTV 15%, slightly above KTN 13%, finally K24 with 10% http://www.kahawatungu.com/2014...tion-to-mediamax-in-may/

Now People Daily is offering its newspaper for free. In terms of circulation, they claim to be second with 110,000 following Nation's 170,000 and Standard 48,000. http://www.capitalfm.co.ke/busi...y-offers-free-newspaper/

icecube
#3 Posted : Wednesday, July 02, 2014 12:44:57 AM
Rank: Member


Joined: 1/2/2008
Posts: 268
Location: Nairobi
madollar wrote:
Interesting but risky strategy by ian fernandez regarding the people newspaper now free to depend solely on revenue from advertising the risky part is what happens if advertisers do not respond also how will they implement the free part given that newspaper vendors have to get their cut


You are very right! Distributing that newspaper will be a challenge. It may cost them more to distribute because vendors must get their cut. Let us wait and see how it goes, I am sure he must have considered that too.
Gordon Gekko
#4 Posted : Wednesday, July 02, 2014 10:09:33 AM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
Where do I get my free copy? Wouldn't it be more effective if they do a downloadable pdf like Nation and Business Daily?
madollar
#5 Posted : Wednesday, July 02, 2014 5:31:43 PM
Rank: Veteran


Joined: 11/17/2009
Posts: 2,038
Location: GA
icecube wrote:
madollar wrote:
Interesting but risky strategy by ian fernandez regarding the people newspaper now free to depend solely on revenue from advertising the risky part is what happens if advertisers do not respond also how will they implement the free part given that newspaper vendors have to get their cut


You are very right! Distributing that newspaper will be a challenge. It may cost them more to distribute because vendors must get their cut. Let us wait and see how it goes, I am sure he must have considered that too.


The easiest and most cost effective way to go around this is to set up branded boxes and place them at strategic places like kencom westlands uppperhill also do the same in the other big cities where members of the public can pick ONE free copy but this being kenya mtu moja atakuwa anabeba zote.

We might have another case study in a few months time if fernandes and his team do not execute this properly

littledove
#6 Posted : Thursday, July 03, 2014 11:26:27 AM
Rank: Veteran


Joined: 7/1/2014
Posts: 903
Location: sky
madollar wrote:
icecube wrote:
madollar wrote:
Interesting but risky strategy by ian fernandez regarding the people newspaper now free to depend solely on revenue from advertising the risky part is what happens if advertisers do not respond also how will they implement the free part given that newspaper vendors have to get their cut


You are very right! Distributing that newspaper will be a challenge. It may cost them more to distribute because vendors must get their cut. Let us wait and see how it goes, I am sure he must have considered that too.


The easiest and most cost effective way to go around this is to set up branded boxes and place them at strategic places like kencom westlands uppperhill also do the same in the other big cities where members of the public can pick ONE free copy but this being kenya mtu moja atakuwa anabeba zote.

We might have another case study in a few months time if fernandes and his team do not execute this properly



just received a free copy in comfort of my office, somebody has just delivered and assured she will be punctually delivering every day, a big surprise
There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
Swenani
#7 Posted : Thursday, July 03, 2014 11:40:53 AM
Rank: User


Joined: 8/15/2013
Posts: 13,236
Location: Vacuum
littledove wrote:
madollar wrote:
icecube wrote:
madollar wrote:
Interesting but risky strategy by ian fernandez regarding the people newspaper now free to depend solely on revenue from advertising the risky part is what happens if advertisers do not respond also how will they implement the free part given that newspaper vendors have to get their cut


You are very right! Distributing that newspaper will be a challenge. It may cost them more to distribute because vendors must get their cut. Let us wait and see how it goes, I am sure he must have considered that too.


The easiest and most cost effective way to go around this is to set up branded boxes and place them at strategic places like kencom westlands uppperhill also do the same in the other big cities where members of the public can pick ONE free copy but this being kenya mtu moja atakuwa anabeba zote.

We might have another case study in a few months time if fernandes and his team do not execute this properly



just received a free copy in comfort of my office, somebody has just delivered and assured she will be punctually delivering every day, a big surprise


I was given in traffic jam.I thought its just a promotion!Kumbe its free forever?
If Obiero did it, Who Am I?
Othelo
#8 Posted : Thursday, July 03, 2014 11:52:47 AM
Rank: User


Joined: 1/20/2014
Posts: 3,528
People was hot during Matiba days. Lost ladha along the way ........... needs aromat!
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
Msasani
#9 Posted : Friday, July 04, 2014 6:30:13 PM
Rank: Member


Joined: 6/26/2008
Posts: 16
Fernandez has gone for the jugular. If this is sustained long enough (for which they have pockets and political reasons to do) PD will have the highest circulation in no time. Standard will die. NMG will soon be gasping for breath as the advertisers go for the bigger growing reach. 2017 here we come. Game on,
murchr
#10 Posted : Friday, July 04, 2014 6:37:37 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
Swenani wrote:
littledove wrote:
madollar wrote:
icecube wrote:
madollar wrote:
Interesting but risky strategy by ian fernandez regarding the people newspaper now free to depend solely on revenue from advertising the risky part is what happens if advertisers do not respond also how will they implement the free part given that newspaper vendors have to get their cut


You are very right! Distributing that newspaper will be a challenge. It may cost them more to distribute because vendors must get their cut. Let us wait and see how it goes, I am sure he must have considered that too.


The easiest and most cost effective way to go around this is to set up branded boxes and place them at strategic places like kencom westlands uppperhill also do the same in the other big cities where members of the public can pick ONE free copy but this being kenya mtu moja atakuwa anabeba zote.

We might have another case study in a few months time if fernandes and his team do not execute this properly



just received a free copy in comfort of my office, somebody has just delivered and assured she will be punctually delivering every day, a big surprise


I was given in traffic jam.I thought its just a promotion!Kumbe its free forever?



This is the way to go. The rest will follow suit once the numbers pick up. In the west, ppl get the papers free and the company relies on revenue from advertising. If the People rakes in enough from advertising, it will give S&G and NMG a good run for their money.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
Gordon Gekko
#11 Posted : Friday, July 04, 2014 8:06:07 PM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
Msasani wrote:
Fernandez has gone for the jugular. If this is sustained long enough (for which they have pockets and political reasons to do) PD will have the highest circulation in no time. Standard will die. NMG will soon be gasping for breath as the advertisers go for the bigger growing reach. 2017 here we come. Game on,

NMG model of free pdf in my opinion is the way to go. They will not only hit the rural areas consistently (hence good returns for advertisers) but they will also be covering the diaspora catchment area. Print media is dying, free print media is a disaster, and free print has a very small readership (I cant get a copy, much as I'm in Nairobi).
Lolest!
#12 Posted : Friday, July 04, 2014 9:03:22 PM
Rank: Elder


Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
Reminds me of The Weekly Advertiser by NMG
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
Rankaz13
#13 Posted : Friday, July 04, 2014 10:56:07 PM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
Gordon Gekko wrote:
Msasani wrote:
Fernandez has gone for the jugular. If this is sustained long enough (for which they have pockets and political reasons to do) PD will have the highest circulation in no time. Standard will die. NMG will soon be gasping for breath as the advertisers go for the bigger growing reach. 2017 here we come. Game on,


NMG model of free pdf in my opinion is the way to go. They will not only hit the rural areas consistently (hence good returns for advertisers) but they will also be covering the diaspora catchment area. Print media is dying, free print media is a disaster, and free print has a very small readership (I cant get a copy, much as I'm in Nairobi).


Which 'free pdf' is this?d'oh!
Life is like playing a violin solo in public and learning the instrument as one goes on.
murchr
#14 Posted : Friday, July 04, 2014 11:10:56 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
Gordon Gekko wrote:
Msasani wrote:
Fernandez has gone for the jugular. If this is sustained long enough (for which they have pockets and political reasons to do) PD will have the highest circulation in no time. Standard will die. NMG will soon be gasping for breath as the advertisers go for the bigger growing reach. 2017 here we come. Game on,

NMG model of free pdf in my opinion is the way to go. They will not only hit the rural areas consistently (hence good returns for advertisers) but they will also be covering the diaspora catchment area. Print media is dying, free print media is a disaster, and free print has a very small readership (I cant get a copy, much as I'm in Nairobi).


Print media is not dying, the newspaper business is on a decline. More and more people are demanding the online medium of reading news, and they dont want to wait until tomorrow to know what has just happened. The paper edition will only be good for gossip and advertising. To add more flavor to it just give the companies options to have their coupons in there.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
madollar
#15 Posted : Monday, July 14, 2014 5:53:47 PM
Rank: Veteran


Joined: 11/17/2009
Posts: 2,038
Location: GA
New developments as X news another free newspaper sells 40% stake to fusion capital.

If the people and Xnews gains in readership and be able to sustain the free model then the main papers have some serious compe ahead

The future for print media is free news, and the future for media as a whole is digital, web and SMS services. Companies are looking for an efficient and targeted way to promote their products and this is what Xtra will offer,” said Xtra Publishing chief executive Paul Marshall in a statement.
Robinhood
#16 Posted : Friday, July 25, 2014 2:33:09 PM
Rank: Elder


Joined: 12/11/2008
Posts: 2,306
PD need top really work on content. I picked one whilst stuck on traffic and I could not spend more that a few minutes glancing through crap stories - most of them very close to propaganda. Ati headline was 'Eastleigh terror gangs busted!!' I was like reeeeaaaally??

The rest of the paper was stuff I found just too crap. Unless they want to provide wrapping for nyama, content will have to improve
Great men are not always wise, neither do the aged understand judgement...
Gordon Gekko
#17 Posted : Friday, July 25, 2014 3:38:06 PM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
Not quite sure if the free model is working. How do they compensate the vendors who hand out the paper? I suspect they are on a fixed salary, which explains why they are so lethargic in the morning when all the rest who survive on commissions are busy running and weaving through traffic at roundabouts selling because their mullah is directly related to what they sell.
They need to sell at a cost where all the proceeds go to the vendor, i.e. sell it at ksh 5/-. That way the vendors will be charging at you trying to close a sale. BTW, if a People vendor decides to just go home with all the papers instead of distributing them (karatasi ya kuwasha jiko), how can it be verified that they were given out?
murchr
#18 Posted : Monday, July 28, 2014 8:21:06 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
People Daily free E-paper is on a test run. Seems they've seens some fruits. Change is the only constant.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
real cindano
#19 Posted : Monday, July 28, 2014 9:45:28 PM
Rank: New-farer


Joined: 6/1/2010
Posts: 87
Location: Zimbalabala
Gordon Gekko wrote:
Not quite sure if the free model is working. How do they compensate the vendors who hand out the paper? I suspect they are on a fixed salary, which explains why they are so lethargic in the morning when all the rest who survive on commissions are busy running and weaving through traffic at roundabouts selling because their mullah is directly related to what they sell.
They need to sell at a cost where all the proceeds go to the vendor, i.e. sell it at ksh 5/-. That way the vendors will be charging at you trying to close a sale. BTW, if a People vendor decides to just go home with all the papers instead of distributing them (karatasi ya kuwasha jiko), how can it be verified that they were given out?


Freesheets is just part of the market diversification and I doubt they will really hit Nation bottom in the short run. What the PD will do is reduce quality, reduce journalistic quality and stick to tabloidish/ main news cycle material, and they will definitely work on reducing their supply chain cost. I am sure as with most FMCG supply chain cost account for 40-60% of the cost of the news paper. If they can reduce their supply chain cost while increasing coverage they will likely get their numbers up.

The next important question is whether advertiser will advertise in their paper. In the short term they will have to prove their utility and who their readership is before they start getting advertisers.

This is however exciting let the market grow and Im glad big business are actually trying new and risky things instead of stick to the good old and tested. #progress!
madollar
#20 Posted : Wednesday, July 30, 2014 5:38:11 PM
Rank: Veteran


Joined: 11/17/2009
Posts: 2,038
Location: GA
real cindano wrote:
Gordon Gekko wrote:
Not quite sure if the free model is working. How do they compensate the vendors who hand out the paper? I suspect they are on a fixed salary, which explains why they are so lethargic in the morning when all the rest who survive on commissions are busy running and weaving through traffic at roundabouts selling because their mullah is directly related to what they sell.
They need to sell at a cost where all the proceeds go to the vendor, i.e. sell it at ksh 5/-. That way the vendors will be charging at you trying to close a sale. BTW, if a People vendor decides to just go home with all the papers instead of distributing them (karatasi ya kuwasha jiko), how can it be verified that they were given out?


Freesheets is just part of the market diversification and I doubt they will really hit Nation bottom in the short run. What the PD will do is reduce quality, reduce journalistic quality and stick to tabloidish/ main news cycle material, and they will definitely work on reducing their supply chain cost. I am sure as with most FMCG supply chain cost account for 40-60% of the cost of the news paper. If they can reduce their supply chain cost while increasing coverage they will likely get their numbers up.

The next important question is whether advertiser will advertise in their paper. In the short term they will have to prove their utility and who their readership is before they start getting advertisers.

This is however exciting let the market grow and Im glad big business are actually trying new and risky things instead of stick to the good old and tested. #progress!


The sunday copy had only 1 advert full page by kenya power meanwhile the sunday nation priced @60 bob it was business as usual advert after advert
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