WAN-IFRA What newspaper printers can learn

from the brand-name products industry

Kurt Kribitz

Styria: figures, data, facts

Positioning

Strategic outlook & GAP analysis

Package of measures for closing the strategic gap

Innovation and benefit for the partners

Marketing measures of innovation

contents

2

the company

3

the company

• 250 employees

• 50.000 tons of paper

• 7 CtP lines (AGFA + Krause)

• 6 CS – printing machines

(MAN Roland + KBA)

4

• 7 Ferag

mailroom lines

• 3 TOC gluing machines

• 4 memo stick devices

• 4 inkjet devices

position

core business: Printing and mailroom provider for the Styria brands and external customers

extended core business: Print management for selected Styria brands and external customers

additional service: Paper purchasing for all Styria brands

36% periodic newspapers

64% daily newspapers

revenue € 63 million

No. 2 in Austria

No. 1 in Croatia

excellent printing quality

(WAN-IFRA International Color Quality Club 2012-2014)

High professional competence, stable economic basis, international presence

5

strategic outlook

evaluation of the strategic gap

standard

CS products

daily

newspapers

6

2006 2012 2018

50

70

55

60

65

development of revenue in EUR million

GAP analysis

all current products

new competitor in Croatia

reduced buying power of readers

reduction of circulation and pages

measures for closing the gap

market development

product development

market penetration

diversification

7

market field strategy

strategic outlook

measures for closing

the gap:

high-end

CS products

standard

CS products

daily

newspapers

product development

concept development

specialised types of

advertising

market development

market penetration

sales initiative

classic sales of

periodic CS products

daily newspapers

leading product for

investment &

organisation

8

2006 2012 2018

50

70

55

60

65

development of revenue in EUR million

all current products

GAP analysis

without measures

market penetration

more of the same!

sharpen USP

define the geographic target market

provide target customers with

advantages

success factors:

sales skills

excellent market knowledge

product skills

advisory skills

exact knowledge of cost structure

9

chance:

easiest method to increase utilisation of

machinery

risk:

increased competition can push down the price

processing of enquiries overwhelms the

organisation

rule:

Never fall below defined price threshold

Austria

market development

existing products will be sold in new markets

Croatia

Slovenia

Italy

Germany

success factors :

language skills

marketing skills

product skills

advisory skills

sales skills

know-how about the target customers

very good preparation before market entry

10

chance:

potential of significant business expansion

access to new markets brings new knowledge in

the organisation

increasing the machine utilisation during days of

low production

risk:

currency risk

increased non-payment risk

legal risk

Increased international competition pushes down

the price

investment risk (organisation costs)

neglect of main markets

rule:

customer contact only after working out a suitable

customer value

sharpen USP

define target customers

provide target customers

with advantages

product development

new products in existing markets

increase in market volume for internal and external

customers

Austria

Croatia

Slovenia

Italy

success factors :

innovation skills

product skills

sale skills

marketing skills

language skills

story

distribution channel

endurance & consistent action

R&D budget

business plan

products:

association newspapers (concept development)

High-end cover (4 pages, 8 pages, 16 pages)

CS flyer

chance:

enlargement of printing & publisher markets

to be equal of the customer

open new networks

increase of machine utilisation

price is not the main focus during negotiations

risk:

demotivation because of failure

loss of reputation towards customers

rule:

clear, noticeable value

simple story

11

sharpen USP

define the geographic target

market

provide target customers with

advantages

term “value innovation”

value innovation is more than an

innovation

it is a strategy that includes all

activities in the system

both buyer and provider have to

realise a benefit from value

innovation

value innovation is based on the

idea that market boundaries are not

fixed, but can be re-defined!

creation of value innovation through

eliminating the direct relation

between value and costs

12

See Kim, W./Mauborgne, R.: Blue Ocean Strategy: How to Create

Uncontested Market Space and Make the Competition Irrelevant, 2005, p.16.

product development

focus value innovation

High-end cover:

until now only possible with longer lead time

up-to-date, customer-related

advertising content in high-end quality

data transfer until 2 hours before the

print start of the daily newspapers

production on the coldset press, premium paper 90g,

60 printing dots per cm, production including prefold, wrapped

on diskpool

processed as main product, the daily newspaper is the 1st

supplement

13

NEW

NEW

NEW

NEW

product development

focus value innovation

value end customer:

actual content, high product quality, high attention

value publisher:

enlargement of market volume, therefore redefinition of market boundaries,

reduced competition, story for print, arguments for higher prices

value printing house:

improved utilisation of press and mailroom

without hypercompetition, image upgrading,

improvement of monetary result

14

anchorage in market

product

management

printing

sales department

printing house

product management

newspaper

sales department

newspaper

• drafting of value

advantages

• drafting of the

story

• visualisation of

the advantages

• training for sales

staff

• several checks of

product

acceptance

(feedback

test customer)

• convince PM of the product

idea

• ensure that “yes” is not a

withdrawal

• support with working on the

draft for a sales concept

(newspaper)

• training for sales staff

• description and handover of

sales presentation

• sales supporting measures

towards the end customer

• feedback for product

improvement

• constant evaluation of

success

15

c

u

s

t

o

m

e

r

advantage of strategic sales management

management attention on defined topics

management focuses on innovation

focus of sales staff and technicians (multinational) on the same topics

best practice examples are exchanged within the print group

strategic targets as long-term instructions for managers and employees

strong commitment on operational targets from

technicians and sales staff

sufficient focus on the future

low failure ratio

systematic performance development

sustainable positive results

16

THANK YOU!