Marketing Strategies: Discussion 3

Running head: USA TODAY 1

USA TODAY

SWOT Analysis of the USA Today

Internal Strengths	External Opportunities
· Huge Gannett media conglomerate · Marketing know how · Popularity, credibility, and familiarity · Extensive information gathering resources · Clear, concise, and colorful format that subscribers find appealing · Comprehensive sports coverage · Contracts with national advertisers	· Consumers desire more timely news and information · The Internet is a highly accessible and low cost distribution outlet · Advertisers are becoming more interested in targeted marketing, especially among a highly mobile population · The Internet allows for customizable content · New technologies exist, besides print media, for reaching consumers · Major news competitors are slow to innovate
Internal Weaknesses	External Threats
· Lack of local news content · High fixed costs associated with the print version · Crowded format of online version · Online version is not as customizable as competitors · Online version uses popup ads that are unpopular with consumers · Some still see USA Today as a “McPaper” · Perhaps some blind faith in the staying power of printed news	· Abundance of free sources of news and information on the Internet · Online revenue generation ability is weak compared to hard (printed) materials · The Internet has introduced an interactive and accessible delivery platform that cannot be matched by a printed newspaper · The volatility of newsprint prices · Google and other non-conventional advertising businesses are tapping into the growing online advertising market

From day one, the newspaper was designed to be like no other: The newspaper has incorporated many quality improvements and added features (Lydia, 2013). Some examples include news layered for easy access and quick comprehension by time-pressed readers; many ”gimmicks” such as tight, short stories; no jumps from page to page, except for the “cover story” (stories that jump to another page are one of newspaper readers’ major complaints); splashy, colorful graphics everywhere; a distinctive, casual writing style; a colorful national weather map; an upbeat and positive tone; a space-defying number of stories, factoids, larger-than-usual pictures, bar graphs, and charts, all squeezed onto each page without seeming too crowded; and balanced and fair coverage (Mephis, 2013).

The paper incorporated many minor modifications over the years to set it apart from competitors and to stay abreast of the market, including: First, a shift to more hard news and deeper coverage, especially in the Sports and News sections. This was probably done in reaction to competitive critics who labeled USA Today as “McPaper,” in response to consumer surveys and, as the case suggests, as a result of testing the waters with more serious news coverage (USA today, 2012). Secondly, various value-added features such as “hot-line” numbers, reader opinion polls, and a high school “Academic All Star” program. Note that these kinds of features are especially suitable for a publication with a national scope (Smith, 2013). Thirdly, internet content to keep the paper contemporary and relevant, a redesign to make handling the paper easier (a common complaint of readers of broadsheet newspapers is that they are unwieldy to handle). Lastly, promotional innovations, including product samples and front-page advertisements were heightened (USA today, 2012).

Strategy Alternatives

1) Change the format of the USA Today print version to include links to the website, while simultaneously cutting the dimensions of the paper. This would increase traffic to the website and save newsprint expense.

2) Present the latest, breaking hard news stories on USAToday.com only, while creating a supplementary, analytical print version that supports the website. The print version might be described as a “diet newspaper” that will analyze those events and topics that are high interest, controversial, or complex.

3) Create a web portal where readers can customize their online newspaper and have audio and video news automatically streamed to their portable electronic devices at specified intervals throughout the day. All news stories will be anchored by customizable, computer-generated personalities, who read the stories to busy consumers.

The first alternative is fairly easy to implement in the short-term. However, Gannett should take the lead in developing news content for portable electronic devices. Consumers have demonstrated a desire for online, mobile news and USA Today’s traditional news competitors have been slow to innovate. The third alternative is one option that the company might pursue. This alternative is designed to improve the utility of USAToday.com by broadcasting it to busy consumers. Instead of requiring the consumer to find time to read the product on a regular basis, this strategy reads the news to the consumer by means of a computerized, human-like entity. Consumers could choose among different personalities. For example, a consumer could have a female broadcaster read the top news stories; a male read the sports stories, and a different female read the business news. The news content would be highly customizable, a feature that USAToday.com has already started to develop. News stories might include video clips when available, making the entire presentation much like a television news broadcast.

It appears that Allen H. Neuharth, chairman of Gannett, had been doing casual marketing intelligence, keeping his eyes and ears open to changes occurring in the marketplace. He was able to creatively link two key trends: a shorter attention span owing to a perceived time crunch plus a growing thirst for information. Neuharth consequently visualized a product that could simultaneously satisfy both of these developments: a newspaper providing more news about more subjects in less time.

Although increasing digital options for news and information have some industry observers bemoaning the death of newspapers, some feel that newspapers do have a bright future and will thrive if they develop a healthy online presence and adapt to evolving media consumption patterns. In the face of continual competition in both offline and online markets, the future of USA Today depends on its ability to continually push the envelope of innovation and marketing strategy. To remain successful, USA Today must continue to use a value-added strategy that can further enhance distribution of its proprietary content and ensure continued differentiation with respect to the competition.

References

Lydia, W. (2013). Strong, Weak and Latent Ties and the Impact of New Media. The Information Society. 18(53):385–401.

Mephis, N. (2013). Social Interactions across Media: Interpersonal Communication on the Internet. Telephone and Face-to-Face New Media & Society. 6(3): 299–318.

Smith, K. (2013). Value Addition in Print Broadcast. The Information Society. 18(53):385–401.

USA Today Website. Retrieved May, 05, 2014 from; http://www.usatoday.com/