PD Case - Presentation

7/29/2019 PD Case - Presentation

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Presented by:Simon Abou AbdoEduardo PiccolottoMadhu RaoSandra Rodriguez

Friday July 26th, 2013 MIP, Milano


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Objectives

Giving an answer to Mr. Style if a 10% growth through thenext 3 years can be achieved.

Present a range of areas that can be exploited in order toachieve the target.


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Executive SummaryBased on the Data collection regarding the National and Provincial Market in dailies newspaper,

along with a survey we ran thru the both markets, we find the following areas of opportunities toreach the goal of generation of higher profit for the Galaxy company.

National Newspapers:Reduce Labor & Paper Cost: Consider the possibility to outsource the typesetting and the printingand by doing that there would be no problems with the unions.Improve Editorial Costs: There is the need to maintain the excellence among your writers, as they

are the ones that attract more people, and help to maintain a branding process. For the general news,to reduce the expenses, there is the possibility to outsource the generation of the general news tobloggers or writers trough a job-on-call scheme.S&A: One of the solutions proposed is to reduce managerial levels, take off the middle management,hence, flatten the structure of the company.Advertising: Although the advertising expenses of the Daily Planet (at 6% of the revenues) is at parwith the industry average, we are of the opinion that an additional revenue generated by theincrease in the advertising space in Provincial Dailies would offset the Advertising cost of DailyPlanet.

Provincial Newspapers:Topics Coverage: Provincial Market needs of information are wider than the current topics that thePlanet dailies is covering. From order of importance: Local news, Special features (women, health,home, garden, electronics), Simplicity of Style and Global Editorial.Delivery Structure: Also another highly important matter in the survey is the deliver at homeinstead of finding the dailies at the Shops. Now the Planet Provincial dailies are only covering 32%

of the market with Home Deliveries


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AgendaI. National Cost Structure

1. Labor and paper2. Editorial3. S&A4. Advertising

II. Provincial Quality1. Topics Coverage2. Delivery Structure


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National Labor & Paper Cost Reduction Consider the possibility to outsource the typesetting and the

printing and by doing that there would be no problems withthe unions

Along with the outsource, the paper cost would increase,but the synergy generated with the outsource of thoseactivities would increase the saving

To maintain the cost low we can have a leverage by: Using an EoS and make them print also the local newspaper Have a year by year cost negotiation


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National Editorial Cost Reduction There is the need to maintain the excellence among your

writers, as they are the ones that attract more people, andhelp to maintain a branding process

For the general news, to reduce the expenses, there is thepossibility to outsource the generation of the general newsto bloggers or writers trough a job-on-call scheme

With the savings, there is the possibility to award theexcellences


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National S & A Cost Reduction Reduce managerial levels

Take off the middle management Flatten the structure of the company

Outsource the distribution. Reduce cost of employees Reach larger number of houses


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National Advertising Cost Reduction Increase advertising space in provincial

Generate additional revenue Offset advertising cost of galaxy

Possibility of increasing revenues generated by advertising 2 Galaxy dailies have 34% of the advertising share but reserve only 32% space for advertising (industry avg 40%). price per line of advertising is 11% less than the industry avg.


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Provincial Quality Improvement Topics Coverage

Market requirements: Home, Local Politics & Culture

Delivery Structure: 94% Market desires Home Delivery Currently covering only 32% of the Market with Home

Delivery


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Conclusion

Fortunately, Galaxy is able to achieve the goal of increasing profitby focusing in the expansion of the Provincial dailies by attracting

more market with wider coverage in topics and Home delivery

service.

Also by not forgetting about the National management basicallyin the cost structure in order to have a better control of the

expenditures in this sector

PD Case - Presentation

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