Finland

How to grow in a saturated, competitive market

without launching new magazines?

Rio De Janeiro, April 2001

Pauli Leimio:

IntroductionIntroduction

IntroductionIntroduction

IntroductionMagazine Country

• 3 562 periodicals in total• 2 826 using post delivery

100 %

GutsGuts

Guts

Sports & Gambling

Finns as Target Group

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Finns as Target Group

Finns as Target Group

GrowthThe dilemma of

The Dilemma of Growth

3• Three alternative ways:

Growth | First way: Developing Subscription sales

1. Developing Subscription sales:

Areas:

North AmericaSweden

Finland

Growth | First way: Developing Subscription sales

1. Developing Subscription sales:

You need:

• Effective information systems• Customer addresses• Look after the subsribers• Follow their movements

You get:

• Information directly

You create:

• Competitive advantage

Growth | First way: Developing Subscription sales

Results:

• Subscription sales form 75 % of total sales.• This has become the main source of sales income.• Automatic renewals make more than 50 % of

subscription sales.• Our customer data base consists of 4 million

customers.• We have penetration of 80 % of all Finnish

households.

Growth | Second way: Utilizing Magazine Contents

2. Utilizing Magazine Contents

• Books

• Internet services

• TV series

We Parents Magazine:

• 49 individual programs in two years

Growth | Second way: Utilizing Magazine Contents

Results:

• The magazine Kaksplus (We Parents) reinforced its position as market leader.

• The number of readers rose by 8 % for the first year and 13 % for the second.

Growth | Third way: Web Utilization

TM Magazine:• Leading motoring and technology magazine in Finland

• Car tests carried out in arctic conditions

3. Web Utilization

Growth | Third way: Web Utilization

TM Magazine:• Two-tier web system

• Guest area

• Renewal Subscriber area

Guest area

3. Web Utilization

Growth | Third way: Web Utilization

Renewal Subscriber areaPDF

TM Magazine:

3. Web Utilization

• Two-tier web system

• Guest area

• Renewal Subscriber area

Growth | Third way: Web Utilization

Results:

• The automatic renewal subscriber base for TM Magazine grew by 9 % thanks to the new service.

• Circulation has increased by 10.6 % during the past two years.

Conclusions

Conclusions:

• Organic growth possible (even in extremely competitive market).

• Service offered to be linked to core business.

• Publisher’s position reinforced.