Posted: May 17th, 2021
Education 2 72% University or above Geographic HECK Island , Central, TTS Commercial Areas Source The Hong Kong Audit Bureau of Circulations Ltd & Nielsen Media Index HECK Year-End Report 2012 Demographic According to the source from HACK Ltd and Nielsen Media Index HECK Year-End Report in 2012, 70% of readers fall into the age range between 30-49 years old. It means that the readers are used to read SCAMP English newspaper. They are loyal to SCAMP for personal reading interest or business insight.
For education background, 72% of readers has university graduate or above so that they are well-educated, repressions and in senior position. The readers are willing to pay the higher price to get quality news instead of free newspaper. The readers under 29 years or below is only 19% of the total market. Geographic: SCAMP circulates the print via channels like newspaper stores and convenient stores. Most of the circulation gain from HECK Island, Central, TTS & other commercial areas.
As ethnicity was 57% of Non-Chinese and 43% of Chinese, it reflects most of the readers are foreigners. Demographic & Geographic are presenting the similar data which means the result would be more truthfully and specifically. Most SCAMP readers are of premium social status such as Managers, Executives and Professionals for self-use etc. For corporate customers, company size with over 50 staff or global firms, the subscription of SCAMP is a corporate image. They are frequent and loyal users regardless of the higher subscription price.
Also schools, universities, Government, financial & banking clients are the major consumers. Behavioral: SCAMP bases on different consumers’ desires to provide the following marketing plan. 0 Monday – Friday, corporate and stable readers, regularly Sunday – leisure day, less demand, no corporate Saturday is more popular for Job seekers for The Classified Post Company: At least one copy of SCAMP daily 2. 2 Targeting The target customers are divided into B to C (Business to Consumer) and B to B (Business to Business) models.
B to C (Business to Consumer) For consumer market, readers are decision makers, Government officers, Coos, senior executives, scholars, professionals, university students, and Westerners. Their average income belongs to high income group (40% Monthly Household Income HECK $70,000 or above). They have high spending power. Job seekers who look for quality arrears ’employers and better salary offers will search the Jobs from Classified Post. The employers / recruitment agents who look for quality staff will place advertising on Classified Post to recruit their staff.
Besides, the consumers look for news with highest creditability and they are very loyal to SCAMP. B to B (Business to Business) For corporate customers like multi-national companies, they are very loyal to SCAMP and purchase at least one print in the office on a daily basis for company image or quote SCAMP news as educational reference and or use published statistics in their business reports. For primary, secondary and university students, Education Bureau encourage students to subscribe SCAMP newspaper to pick up their reading hobby. Undeniably, SCAMP is the leader of HECK English newspaper. . 3 Positioning SCAMP mission is ‘As we move forward in these rapidly changing times, can be summed up in three words: Aspiration, Connection and Trust. Aspiration: We deliver value and quality to our customers by enhancing knowledge. Connection: We bridge Hong Kong, China and the rest of the world, and we actively engage in these communities. Trust: We will grow with the region as the trusted littoral on China. Being market leader in English newspaper, SCAMP won 11 awards in 2013, the Top Prize of Society of Publishers in Asia Editorial Award 2013.
SCAMP gained the 1st ranking of Highest Credibility in Hong Kong newspaper market according to the survey conducted by Center for Communication Research of Chinese University (2011). SCAMP is consistently striving to seek ways to retain its market leader position in English newspaper market since 1903 and keeping the high standard in newspaper contents with highest credibility so that its readers are very loyal to SCAMP. 3. Marketing Mix The marketing mix is a business tool used to execute the market strategy into practical business activity.
Our team is study focus on newspaper business – South China Morning Post (SCAMP) – an English Newspaper, retail selling price is HECK$9 from Monday to Saturday; HECK$II for Sunday Morning Post. The most important value of the newspaper is Fair, Fact, Credibility, and Integrity; it is why SCAMP can be the market leader and long lasting Product is “the tangible or intangible goods or services and how it can satisfy consumer’s needs and wants”. Products have different life cycle, it will grow, mature and eventually decline and phrase out.
Therefore, SCAMP has carried various product mix in order to extend the product line to secure the income and maintain the growth of the business. Apart from printed copy, it has added digital subscription from 2010 as Internet and Smartened become more common and popular. They have changed the reading habit of the whole world. Besides, mobile APS application has been added in 2012. Subscribers are Job seekers who expect to find quality Jobs from the newspapers. On the other hand, it attracts employers or recruitment/hiring agents to post the recruitment advertisement on the newspaper.
It is an important platform for Job seekers, employers and recruitment agents. Pricing is “the process of setting a price for a product or discount. The price needs not be monetary; it can simply be what is exchanged for the product or services. SCAMP is carrying premium pricing strategy. From circulation information, its target customers are well-educated and belong to the group of middle to high income. They are less sensitive (inelastic of demand) to commodity items like food and newspapers. Buying a newspaper at $9/$10 is not a concern to them.
On contrast, Chinese newspaper segment is large and very sensitive to penny change on pricing, hush free newspaper is popular in the market Premium pricing also represents the reader’s prestigious status and quality. High credibility is the most important thing to them. Apart from newspaper revenue, advertisement is one of the major income streams in SCAMP. It also charges the customers higher advertising price for posting recruitment advertisement if comparing to Recruit, Jobs. It tells the customers that its readers possess good quality when they are looking for their companies.
If the customers want to recruit people with high quality and capability, SCAMP is the only choice. Place (or distribution): “It is how to deliver the goods or service to the customer. ” For printed newspaper, Scamps retailing channels will be news stand or convenient store e. G. 7-11 . In HECK, TTS, Central and HECK Island, due to business and commercial centers are gathered with numerous westerners coming from different countries. Hence, the circulation of printed copy in these districts is the most. For digital subscription, it is via internet or mobile app.
Promotion: “It includes various methods of promoting the product, brand, or company including advertising, sales promotion, publicity, PR, direct marketing, digital arresting, sponsorship, personal selling. ” Despite SCAMP is a media, it also needs to promote its business. Apart from putting advertisement on its own newspaper and website, SCAMP needs to promote its product via different channels. Loyalty discount to customer: Offer discount to loyalty readers, employers and recruitment agents who has subscribed its newspaper for a long period of time. SCAMP wins numerous Good Word-of-Mouth in this industry.
It wins 11 awards gets the highest ranking in credibility in the HECK newspaper. E. G. Edward Snowmen fair selected SCAMP; it has shown its newspaper has high integrity to the public. It also Joins Job Exhibition Fair, Trade Fair, and Seminar to broaden its exposure to the public. 4. Customer Relationship Management Firstly, as mobile is the single fastest growing source of digital traffic, SCAMP continue to its existing digital offerings with new products such as SCAMP News Pulse, new phone app to enhance the relations with the customers, especially among younger generation.
Secondly, if the customers have subscribed to the members of Classified Post, they can search their Jobs according to their requirements. The Classified Post (“CUP’) will keep customer’s C.V. and personal information in a highly secured way. Then, CUP provides Job Alert e-newsletter and course/self-enhancement information to subscribers’ emails based on subscribers, particular information. This would create a strong bonding relationship between SCAMP and its readers. 5. Market Analysis 5. Circulation Source The Hong Kong Audit Bureau of Circulations Ltd Cover price for SCAMP increased by $1 to $9 since January this year. The online subscription fee for scamp. Com has also increased in late June 2013. 2013-2015 According to the source from the Hong Kong Audit Bureau of Circulations Ltd, the daily circulation of SCAMP is around 100,860 to 107,629 from 2009 to the first half of 013. The daily circulation is very stable within this period. But the circulation mix was changed once digital version was launched in the first half of 2010. In 2009, the daily circulation was solely print version.
Once digital version was launched, it commenced to grow from 3363 in the 1st half of 2010 to 18,149 in the 1st half of 2013. The growth rate of circulation in digital version is 6 times in 3 years. There was a slight drop from 100,860 to 88,776 for print version from 2010 to 2013. This implies the fast growing popularity of phone affect the habit of readers and there is growing rend in digital version in the future. Michael Porter’s 5 forces 1. Bargaining Power of Paper Suppliers – Due to the cost of paper material increases, the paper suppliers will transfer the incremental cost to SCAMP.
It is under great pressure to increase the price of the newspaper print. 2. Bargaining Power of Customers – Customers have little switching cost to read other newspapers. Besides, free digital version is offered by HECK Standard. 3. Threat of New Entrants – There are many English newspapers emerging in HECK market like China Daily and Wall Street Institute which provide free newspapers at some selected estates. . Threat of Substitute Products – Due to growing popularity of phone, the customers have been changing their habits of reading newspapers.
Digital version or mobile APS to access the updated newspapers create tremendous treat to the traditional newspaper industry. 5. Competitive Rivalry Within An Industry – The major competitors, HECK Standard is aggressively offering 200,000 free tabloid newspapers distributed in different districts on a daily basis as well as providing free digital version to their readers. Competitor Analysis The Standard is doing the same as SCAMP to provide English newspaper print, digital erosion and Job searching function.
The Standard has changed to a free newspaper since September 2007. On the other hand, it provides different levels of subscription discounts, which include digital subscription only and print plus digital version subscription. It also offers corporate digital subscription which allows multi-reader access to the digital version. The subscriptions allow readers to access their online and tablet content unlimitedly. We have made a comparison table between SCAMP and The Standard so that we can have more understanding of the keen competition in the newspaper industry.
Comparison of SCAMP and The Standard SCAMP The standard price $9 Free (1st free newspaper since 2007) Digital Version Yes Yes Daily circulation Format Black & white, standard size Full-color, Tabloid Functions Archive news up to 10 years Archive news up to 1 year *HACK Audit July-DCE 2012 ** “The Standard” official website Strength Diversified information SCAMP has published diversified information. It includes the information of current issues, information of sports, property, finance, lifestyle. Also, it encloses Classified Post for Job seekers; Young Post and Education Post for student subscribers. Market leader
There are not much English newspapers being published in Hong Kong. The major competitor is The Standard. The competition is not keen. Thus, SCAMP is the market leader among English newspapers. Sustained demand SCAMP targets high-educated customers. Usually, they earn more, they can afford more. Also, those NC corporations, universities and foreign residents all have regular subscriptions. There is sustainable demand. Weakness Increased staff & production cost Source: SCAMP Group 2013 Interim report – Extract of Income statement Staff and production costs have increased for about HECK$48. Million and HECK$3. Lion respectively. It is mainly due to the increase in headcount and SCAMP Group has included the production of ELL on 2013. It decreases the net profit. Less popular in HECK It costs HECK$9, which is the most expensive newspaper in Hong Kong. Also, it’s bulky in size. It’s inconvenient for readers to carry it around. Moreover, it cannot satisfy those non-English readers. It cannot become a popular newspaper in Hong Kong. Subscription for unlimited digital access If readers want to have unlimited access on digital access, they are obliged to subscribe by money. However, other Hong Kong newspapers, including The
Standard, are free of charge on digital version. It may hinder the increase of digital readers as they may prefer choosing free information. Shares have been suspended trading Its shares have been suspended trading in HECK stock market since 26 February 2013. SCAMP is a listed company in Hong Kong, however, its percentage of public float confidence on the investment and the public image of SCAMP has been affected. Opportunity Increases on demand Source: HECK Census and Statistics Department (“HACKS”) website – Population statistics Source: HECK Census and Statistics Department (“HACKS”) website – Foreign companies
The above statistics has shown that HECK population has kept rising since mid of 2010 to 7,KICK in the mid of 2013. It has also shown that the number of foreign companies setting up local offices in HECK has increased. There is an opportunity for SCAMP to acquire more readers from the growth of population and foreign corporations. Hong Kong Government has promoted post-secondary education since the past decade. The below 2 tables have shown that there has been an increasing trend for people had Post-secondary education nowadays: The demand of English-language newspaper has been increasing with the rising umber of high educated people.
Expand new market It can expand new market by the advancement of technology on digital version, for example “Southern China” as there has been an economic growth in China in the recent years. Threats Keener advertisement added competition The Government has increased 2 new free licensed TV. The advertisement companies have 2 more advertising channels, so there would be keener competition. Decreasing newspaper revenue Source: SCAMP Group 2013 Interim report Revenue from newspaper has been decreased for near HECK$5 million for the 2 interim periods. It indicates less people are willing to buy newspaper.
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