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An investigation into the launch of a tabloid, English-medium newspaper aimed at the mid-tolower segment of the newspaper readership market in selected areas of South Africa

Thesis (MBA)--Stellenbosch University, 1999. / ENGLISH ABSTRACT: The general decline in newspaper circulation indicates that the newspaper industry is under
threat from other media such as television and radio (Swift, 1995: 1 00). However, closer
inspection of individual newspaper titles reveals that highly targeted newspapers like
Sowetan, Business Day, Beeld, etc. manage to maintain or increase circulation (Audit Bureau
of Circulation, 1986-1998). On the other hand, newspapers that caters for disparate market
segments, experienced circulation declines between 1986 and 1998 (Audit Bureau of
Circulation, 1986-1998).
Newspaper's share of total advertising revenue is also in decline (Adindex, 1986-1998).
However, advertising revenue for the newspaper industry as a whole increased in line with
total advertising revenue between 1986 and 1998. Although newspapers enjoy a smaller piece
of the total advertising pie, the steady growth in revenue indicates substantial support and
confidence from the advertising market for newspapers as a whole.
Swift (Marketing Mix, 1995: 100) argues that newspapers must change their way of doing
"news" in order to compete effectively against television, radio, the illtemet and other forms
of popular media. "If newspapers are to survive, they must either become niche products by
providing in-depth coverage and interpretation of specialists aspects of human endeavour or
emulate the British tabloids and peddle entertainment for all they're worth" (Swift, 1995:
101).
The latter aspect of Swift's assertion is the basis of the attached study. The study project
examines the South African newspaper market in general and the greater Gauteng newspaper
market specifically in the form of a business plan, with the aim of finding a viable niche for
a daily, English-medium tabloid newspaper. The African Sun Business Plan concludes that
the market for such a newspaper does exists amongst working class South Africans in and
around selected urban centres. The plan examines the target market and the economics ofthe
newspaper business. The marketing plan examines the best options to reach the target market.
The product development plan and the operations plan describe the product and the operations
ofthe proposed business and the financial plan examines the feasibility ofthe venture.
The data suggests that national circulation and advertising trends favour newspapers that are
highly targeted and driven by the information needs of their selected target markets (Audit
Bureau of Circulation, 1986-1998, Adindex, 1986-1998). The business plan concludes that
there is a lucrative market in South Africa for a daily, English-medium, mass circulation
tabloid newspaper. The plan also proposes an operating structure including the financing
requirements of the business, required staff, location product specifications and a market entry
strategy. "It's time to emulate the Sun and the Mirror (of England) because if the liberal
consensus is correct and all men are equal, why shouldn't the British tabloid approach work
for our whinging masses as effectively as it does for the whining Poms?" (Swift, 1995: 102). / AFRIKAANSE OPSOMMING: OPSOMMING
Die algemene afname in koerantsirkulasies dui daarop dat die koerantbedryf deur ander media
soos televisie en radio bedreig word (Swift, 1995: 100). By nadere ondersoek van individuele
koeranttitels het dit egter aan die lig gekom dat hoeteikenkoerante soos Sowetan, Business Day,
Beeld, ensovoorts, daarin slaag om sirkulasie te behou en selfs te verbeter (Audit Bureau of
Circulation, 1986-1998). In teenstelling het koerante wat vir ongelyksoortige marksegmente
voorsiening maak 'n sirkulasie afname ondervind tussen 1986 en 1998 (Audit Bureau of
Circulation, 1986-1998).
Koerante se aandeel in die totale reklame-inkomste is ook besig om te daal (Adindex, 1986-
1998). Die reklame-inkomste vir die koerantbedryf in sy geheel het egter op een lyn met die totale
reklame-inkomste toegeneem tussen 1986 en 1998 (Adindex, 1986-1998). Alhoewel koerante 'n
kleiner deel van die totale reklamebesteding geniet as voorheen, dui die geleidelike toename in
koerant reklame inkomste groei, aansienlike ondersteuning en vertroue deur die reklamemark in
koerante oor die algemeen.
Swift (Marketing Mix, 1995: 100) voer aan dat koerante hulle metode van "nuusaanbieding" moet
verander ten einde doeltreffend teen televisie, radio, die Internet en ander vorme van populere
media te kompeteer. "If newspapers are to survive, they must either become niche products by
providing in-depth coverage and interpretation of specialists aspects of human endeavour or
emulate the British tabloids and peddle entertainment for all they're worth" (Swift, 1995: 101).
Laasgenoemde aspek van Swift se bewering vorm die grondslag van die megaande studie. Die
African Sun Business Plan stel voor dat 'n daaglikse, kompakte, Engelsmediumkoerant van stapel
gestuur word wat op Suid-Afrikaners in die werkersklas in en om aangewese stedelike sentra
gerig is. In navolging van Swift se redenasie ondersoek die meegaande sakeplan die koerantbedryf
in sy geheel en die groter Gauteng mark in besonder. Die plan ondersoek besonderhede van die
teikenmark en die ekonomie van die koerantbedryf. 'n Volledige bemarkingsplan ondersoek die
beste opsies waardeur die teikenmark bereik kan word.
Die produkontwikke1ingsplan en die bedryfsplan beskryf die produk en die werksaamhede van
die voorgestelde sake-ondememing, en die finansiele plan ondersoek die uitvoerbaarheid van die
ondememing.
Die data suggereer dat nasionale koerant sirkulasie en reklame-tendense meer gunstig teenoor
koerante wat markgerig is en gedryf word deur die inligtingsbehoeftes van geselekteerde
teikenmarkte (Audit Bureau of Circulation, 1986-1998). Die sakeplan kom tot die gevolgtrekking
dat daar 'n winsgewende mark in Suid-Afrika bestaan vir In daaglikse, Engels-medium, massasirkulasie
kompakte koerant. Die plan stel ook 'n bedryf struktuur voor, met inbegrip van die
finansieringsvereistes, personeelbehoeftes, ligging, produkspesifikasies en 'n marktoetrede
strategie. "It's time to emulate the Sun and the Mirror (of England) because if the liberal
consensus is correct and all men are equal, why shouldn't the British tabloid approach work for
our whinging masses as effectively as it does for the whining Poms?" (Swift, 1995: 102).

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/20832
Date12 1900
CreatorsSampson, Fergus G.
ContributorsSmit, Eon, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
RightsStellenbosch University

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