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The People newspaper now free
Rank: Veteran Joined: 11/17/2009 Posts: 2,038 Location: GA
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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
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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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/
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Rank: Member Joined: 1/2/2008 Posts: 268 Location: Nairobi
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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.
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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Where do I get my free copy? Wouldn't it be more effective if they do a downloadable pdf like Nation and Business Daily?
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Rank: Veteran Joined: 11/17/2009 Posts: 2,038 Location: GA
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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
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Rank: Veteran Joined: 7/1/2014 Posts: 903 Location: sky
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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
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Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
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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?
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Rank: User Joined: 1/20/2014 Posts: 3,528
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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.
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Rank: Member Joined: 6/26/2008 Posts: 16
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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,
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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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 .
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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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).
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Reminds me of The Weekly Advertiser by NMG
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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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? Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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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 .
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Rank: Veteran Joined: 11/17/2009 Posts: 2,038 Location: GA
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Rank: Elder Joined: 12/11/2008 Posts: 2,306
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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...
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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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?
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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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 .
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Rank: New-farer Joined: 6/1/2010 Posts: 87 Location: Zimbalabala
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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!
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Rank: Veteran Joined: 11/17/2009 Posts: 2,038 Location: GA
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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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