"Decentralized publishers are more cost-intensive"
Alexander Theobald, Head of the Tamedia Magazines Division, on outsourcing and (major) client requests.
Magazines Tamedia Division Head Alexander Theobald on outsourcing and (major) customer wishes.Magazines Tamedia Division Head Alexander Theobald on outsourcing and (major) customer wishes.WW The current restructuring of your division was preceded by a cross-border benchmarking exercise. What are the most important
Findings, Mr. Theobald?
Alexander Theobald We have identified two key factors. Firstly, those who are successful in this segment usually do not have their own print shop. This development is supported by the rapid internationalization of the printing market. Once the anachronistic punitive tariffs fall, this will become even more relevant here in Germany. We already have TV täglich produced far more cost-effectively in Munich; other duty-free supplements such as Das Magazin could follow. Which brings us to point two, the courage and willingness to outsource. Competitive prices can no longer be achieved without tendering. This applies to prepress as well as reader marketing and, in exceptional cases à la Spick, can even extend to editorial work.
You cannot outsource ad sales. Here is
The savings motto is probably centralization, i.e. the abolition of Tamedia's traditional title autonomy.
The term "relativization" fits better. We are currently examining various superstructure options for our three remaining titles - Facts, Annabelle and Schweizer Familie - in both the advertising and reader markets. However, market proximity can be increased with both centralized and decentralized structures. However, independent publishers with their own sales organizations are more cost-intensive. There is simply a lot of duplication and frictional losses.
It is conceivable that your boss Martin Kall, who was previously responsible for Ringier's magazine business, could adapt their hybrid model.
At Tamedia, we look closely at what others are doing, but we don't copy them. I can't yet say where exactly we will settle between the poles of consolidation and independence. The fact is, however, that media agencies and many major customers
increasingly want a single point of contact and negotiating partner for each publisher.
That sounds like a mixture of centralized office staff with key account competencies and title-specific brand managers. How many jobs will be cut in this way?
Our primary goal is not to reduce staff, but to optimize processes and earnings in order to bring the division out of the red by the end of 2004 for the first time in Tamedia's history. Unfortunately, layoffs will be unavoidable; it is not yet clear how many.
Interview: Oliver Classen
Findings, Mr. Theobald?
Alexander Theobald We have identified two key factors. Firstly, those who are successful in this segment usually do not have their own print shop. This development is supported by the rapid internationalization of the printing market. Once the anachronistic punitive tariffs fall, this will become even more relevant here in Germany. We already have TV täglich produced far more cost-effectively in Munich; other duty-free supplements such as Das Magazin could follow. Which brings us to point two, the courage and willingness to outsource. Competitive prices can no longer be achieved without tendering. This applies to prepress as well as reader marketing and, in exceptional cases à la Spick, can even extend to editorial work.
You cannot outsource ad sales. Here is
The savings motto is probably centralization, i.e. the abolition of Tamedia's traditional title autonomy.
The term "relativization" fits better. We are currently examining various superstructure options for our three remaining titles - Facts, Annabelle and Schweizer Familie - in both the advertising and reader markets. However, market proximity can be increased with both centralized and decentralized structures. However, independent publishers with their own sales organizations are more cost-intensive. There is simply a lot of duplication and frictional losses.
It is conceivable that your boss Martin Kall, who was previously responsible for Ringier's magazine business, could adapt their hybrid model.
At Tamedia, we look closely at what others are doing, but we don't copy them. I can't yet say where exactly we will settle between the poles of consolidation and independence. The fact is, however, that media agencies and many major customers
increasingly want a single point of contact and negotiating partner for each publisher.
That sounds like a mixture of centralized office staff with key account competencies and title-specific brand managers. How many jobs will be cut in this way?
Our primary goal is not to reduce staff, but to optimize processes and earnings in order to bring the division out of the red by the end of 2004 for the first time in Tamedia's history. Unfortunately, layoffs will be unavoidable; it is not yet clear how many.
Interview: Oliver Classen
