Publisher Urs Gossweiler on the first seven months of his Jungfrau ZeitungDespite seemingly overwhelming competition from the Berner Zeitung (BZ), the local newspaper network Jungfrau Zeitung (JZ) is thriving. Publisher Urs Gossweiler reports on the first seven monthsHow is the Jungfrau Zeitung doing seven months after its launch?
Urs Gossweiler: In the first three months, we distributed 15,000 free copies of JZ in the Interlaken region, but since January 3, it has been a normal subscription newspaper. The result: the entire JZ network now has a circulation of 10,000 copies, which corresponds to a market share (MA) of 50 percent in Oberland-Ost, and the trend is rising. In Interlaken, we have been able to gain 2500 new subscribers so far. We are now assuming that we will be able to add another 500 or so subscriptions by October.
How do you explain the strong growth?
Gossweiler: Because the competition allowed the Berner Oberländer to be completely absorbed into the BZ, people had to get used to a completely new newspaper. They did us another favor by taking the Oberländische Volksblatt off the market, which had been well established in the Interlaken area for 125 years. This meant that readers lost their familiar newspaper format.
What new goals have you set yourself?
Gossweiler: We want to achieve an MA of 75 percent in Oberland-Ost in three years' time. This is mainly because of the Amtsanzeiger in Interlaken. Because our competition in the Interlaken advertising market is not the BZ, but the Amtsanzeiger. We are published twice a week and the Amtsanzeiger only once a week. But it goes to
all households (including those with stop stickers). This is why we have to compare it with 75 percent MA in the longer term.
How has the Oberhasler newspaper, which previously did not belong to Gossweiler Media AG, developed?
Gossweiler: The launch on October 6 was met with massive reader protests - for a variety of reasons. By the end of the year, we had lost a total of 1,000 subscriptions to Echo von Grindelwald, Oberhasler and Brienzer, which we were fortunately able to make up for. We had only expected 500 losses.
You had the intention of becoming attractive, not least for the major distributors, with a circulation of 10,000 copies. However, I have now heard that they are more likely to place their advertisements in the Interlaken Amtsanzeiger.
Gossweiler: I have to correct you: The Amtsanzeiger has no promotional advertisements from either Coop or Migros. The JZ, on the other hand, has a half-page advertisement from Migros-Aare on Fridays and a panoramic double-page spread from the Federation of Migros Cooperatives on Tuesdays.
Why isn't Coop coming?
Gossweiler: Because Coop is generally cutting back on local and regional titles, instead pursuing the Swisspool strategy and at the same time focusing on the CoopZeitung. But perhaps that was a good thing for us.
Why?
Gossweiler: So that convenience doesn't creep in. We were counting on Coop and Migros this year. But Coop didn't come, and we still exceeded our budget. In principle, however, we want to calculate in such a way that we could easily cope with the departure of a major distributor. A Coop or Migros advertisement should be the jam on the slice, but never the butter and certainly not the bread. Because we want to refinance ourselves from the local area.
How was the income?
Gossweiler: Since the launch, we have generated net income of over one million francs from the sale of advertisements. In comparison: in the first half of 2000, we had income of 200,000 francs.
When do you expect to break even?
Gossweiler: Every issue in the last seven months has been in the black. Of course, the investments totaling one million francs have not yet been financed. But if things continue like this, we will have written them off in three years. We are also expecting a cash flow of 500,000 francs per year.
At the start, you ran an advertising campaign with Renzen & Partner. Is the collaboration continuing?
Gossweiler: No, we ended it at the end of April because it became too time-consuming for us. But the collaboration back then was absolutely necessary for us and also great. It is quite possible that we will work with Renzen & Partner again in a reactivation campaign.
Is something planned?
Gossweiler: Originally we thought we needed a second campaign, but in view of our good figures we prefer to invest in our product: for two weeks now we have had a new weekly tabloid magazine with 24 pages, a calendar of events and a TV program called 7 Tage. This will cost us CHF 200,000 more per year. But we thought it was right to bring this forward and do without the campaign. Interview: Markus Knöpfli
The Gossweiler print cloverleaf
Before the Jungfrau Zeitung (JZ) network was launched on October 6, 2000, the Bernese Oberland still had the Oberland edition of the Berner Zeitung (BZ), the "old" Berner Oberländer, the Oberländische Volksblatt (OV) and the Hasli Zeitung (HZ). The latter belonged to Gossweiler Media AG. Since then, the Berner Oberländer has been integrated into the BZ and the OV has been discontinued. Gossweiler Media AG also discontinued the HZ, but instead took over the Oberhasler from its competitors and made it, the Echo von Grindelwald, the Brienzer and the JZ part of its own print cloverleaf.
