Presented by: Simon Abou Abdo Eduardo Piccolotto Madhu Rao Sandra Rodriguez

Friday July 26th, 2013 MIP, Milano

Objectives

Giving an answer to Mr. Style if a 10% growth through the next 3 years can be achieved. Present a range of areas that can be exploited in order to achieve the target.

Executive Summary
Based 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 to reach 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 printing and 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 to bloggers 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 par with the industry average, we are of the opinion that an additional revenue generated by the increase in the advertising space in Provincial Dailies would offset the Advertising cost of Daily Planet.

Provincial Newspapers:

Topics Coverage: Provincial Market needs of information are wider than the current topics that the Planet 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 home instead of finding the dailies at the Shops. Now the Planet Provincial dailies are only covering 32% of the market with Home Deliveries

Agenda
I.

National Cost Structure

1. 2. 3. 4.

Labor and paper Editorial S&A Advertising

II.

Provincial Quality
1. 2.

Topics Coverage Delivery Structure

Agenda
I.

National Cost Structure

1. 2. 3. 4.

Labor and paper Editorial S&A Advertising

II.

Provincial Quality
1. 2.

Topics Coverage Delivery Structure

National Labor & Paper Cost Reduction

Consider the possibility to outsource the typesetting and the printing and by doing that there would be no problems with the unions Along with the outsource, the paper cost would increase, but the synergy generated with the outsource of those activities 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

Agenda
I.

National Cost Structure

1. 2. 3. 4.

Labor and paper Editorial S&A Advertising

II.

Provincial Quality
1. 2.

Topics Coverage Delivery Structure

National Editorial Cost Reduction

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 to bloggers or writers trough a job-on-call scheme With the savings, there is the possibility to award the excellences

Agenda
I.

National Cost Structure

1. 2. 3. 4.

Labor and paper Editorial S&A Advertising

II.

Provincial Quality
1. 2.

Topics Coverage Delivery Structure

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

Agenda
I.

National Cost Structure

1. 2. 3. 4.

Labor and paper Editorial S&A Advertising

II.

Provincial Quality
1. 2.

Topics Coverage Delivery Structure

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.

Agenda
I.

National Cost Structure

1. 2. 3. 4.

Labor and paper Editorial S&A Advertising

II.

Provincial Quality
1. 2.

Topics Coverage Delivery Structure

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

Conclusion

Fortunately, Galaxy is able to achieve the goal of increasing profit by 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 basically in the cost structure in order to have a better control of the expenditures in this sector