"Personal touchstone"
«Express» CEO Marius Hagger on Cost Efficiency and Internal Competition
"Express" boss Marius Hagger on cost efficiency and internal competitionBy Oliver Classen Heinz Krebs is still the publishing director of the ZürichExpress in the current masthead. But since the beginning of the week, ex-journalist Marius Hagger has been sitting in his office. There he is poring over Tamedia's battle plans for the next commuter newspaper war. And is hoping for better luck in battle than with the Winner capital destruction machine.
Your last major print project, the Facts counterpart "Reflex", was developed for Ringier under Thomas Trüb. Now you are solely responsible for the new 20-minute competitor "Express". Do you specialize in "Me too" products?
Marius Hagger: An original question, but unfortunately it doesn't correspond to the facts. For one thing, our "Reflex" concept had more in common with today's Weltwoche than the former Facts, and for another, I would only have been a member of the founding editorial team there. The "Express" as we are planning it will also not have a "me too" character, but will be a clearly distinguishable innovation.
As head of Tamedia's "Focus" cost-cutting program, you have cut jobs so far. Now you are creating 20 new jobs. Does that fill you with satisfaction?
Hagger: Satisfaction is not the right word. I'm happy about this new opportunity. Especially that after the difficult experience of setting up the Winner internet platform on the sales side, I now have an opportunity not only to spend money, but also to earn it. And we will. The organizational and cost efficiency that I learned during the "Focus" year, which ended in the summer, will contribute to this. In this respect, the "Express" is also a personal touchstone for me.
With a budget volume of 5 percent of last year's Group turnover, specifically around 35 million francs, the "Express" is also a test for your boss Martin Kall.
Hagger: I don't want to comment on this figure. It is true that in this battle for the commuter market, we must and will prepare ourselves for a marathon rather than a sprint, both financially and in terms of personnel.
The internal project argumentation from the end of September even spoke of the "ambition to produce the best commuter newspaper in the world".
Hagger: If you are given the opportunity to launch a new product with considerable resources in such difficult times, it must surely become the best possible newspaper. Anything else would be unforgivable.
How exactly should "Express" stand out from 20 minutes in terms of content?
Hagger: For example, through journalistic excellence. With the right editorial team, some of whom we already have and some of whom we are recruiting, we should be able to produce two to three prime-time stories a day that have what it takes to become the talk of the town. Another option is authors and columnists who present surprising approaches and also give the paper an intellectual profile. As you can see, there is plenty of potential for differentiation.
These guidelines could also come from the new editor-in-chief of the Tages-Anzeiger, Peter Hartmeier.
Hagger: Journalistic competition stimulates business, even internally. But compared to the Tagi's editorial budget, which is many times higher, the "Express" is fighting a rather short battle. But with all the greater commitment.
Should the official gazette "Tagblatt der Stadt Zürich", which is included in the home delivery of the "Express", also offer its own editorial services?
Hagger: It actually has to. The current contract with the city obliges us to do so. And we are happy to provide this public service conscientiously. However, the content of the commuter newspaper and the Tagblatt will be complementary, i.e. they will not compete with each other.
How many of the eight planned "Tagblatt" pages will not be filled by official advertisements?
Hagger: That depends on the daily schedule. I assume two editorial pages, the rest are official and commercial advertisements as well as classified ads.
From next spring, Tamedia will therefore be publishing three Zurich daily newspapers. For the sake of clarity, it would be helpful to divide up the advertising market accordingly: for example, the image campaigns for the Tages-Anzeiger, the recommendation ads for the "Express" and the classifieds for the "Tagblatt".
Hagger: Such a demarcation is unrealistic and does not meet the needs of the advertising market, let alone the competitive situation in the commuter market. The "Tagblatt" and "Express" are positioned in a commercially complementary way and their rates are aligned according to their reach and reader structure.
In analogy to the full house of Tagi and SonntagsZeitung, other in-house combinations would also make sense.
Hagger: We will certainly examine sensible options in detail in due course. But first we will have to wait and see how the market takes to the new products. This process can only be controlled to a limited extent.
Distribution, on the other hand, is very precise. It is surprising that Tamedia continues to provide its logistics to arch-enemy 20 Minuten despite its official declaration of war. In view of the martial rhetoric of your boss, it seems imperative to terminate this contract for the supply of boxes and colportage.
Hagger: I see it differently. I have no problem with Tamedia utilizing its distribution capacity and earning good money with it. Besides, 20 Minuten would otherwise simply set up its own structures. So nothing would be gained by terminating the contract, but something would be lost, namely an interesting contract.
How many colporteurs will be deployed at the beginning of April?
Hagger: The launch date has not yet been set. We will be working with over 100 colporteurs, selecting them very carefully and preparing them for their task as far as possible. After all, they are our product managers on the front line.
You can also control the printing of the "Express". Almost half of the initial print run of 300,000 copies has to be produced externally. Who has now received the printing order?
Hagger: Tamedia will print a large part of the "Express" circulation and the "Tagblatt" itself. Until we put our new, even more efficient printing presses into operation in mid-2004, the Zehnder company in Wil will print the remaining, also large part of the "Express" circulation.
See also page 20
Your last major print project, the Facts counterpart "Reflex", was developed for Ringier under Thomas Trüb. Now you are solely responsible for the new 20-minute competitor "Express". Do you specialize in "Me too" products?
Marius Hagger: An original question, but unfortunately it doesn't correspond to the facts. For one thing, our "Reflex" concept had more in common with today's Weltwoche than the former Facts, and for another, I would only have been a member of the founding editorial team there. The "Express" as we are planning it will also not have a "me too" character, but will be a clearly distinguishable innovation.
As head of Tamedia's "Focus" cost-cutting program, you have cut jobs so far. Now you are creating 20 new jobs. Does that fill you with satisfaction?
Hagger: Satisfaction is not the right word. I'm happy about this new opportunity. Especially that after the difficult experience of setting up the Winner internet platform on the sales side, I now have an opportunity not only to spend money, but also to earn it. And we will. The organizational and cost efficiency that I learned during the "Focus" year, which ended in the summer, will contribute to this. In this respect, the "Express" is also a personal touchstone for me.
With a budget volume of 5 percent of last year's Group turnover, specifically around 35 million francs, the "Express" is also a test for your boss Martin Kall.
Hagger: I don't want to comment on this figure. It is true that in this battle for the commuter market, we must and will prepare ourselves for a marathon rather than a sprint, both financially and in terms of personnel.
The internal project argumentation from the end of September even spoke of the "ambition to produce the best commuter newspaper in the world".
Hagger: If you are given the opportunity to launch a new product with considerable resources in such difficult times, it must surely become the best possible newspaper. Anything else would be unforgivable.
How exactly should "Express" stand out from 20 minutes in terms of content?
Hagger: For example, through journalistic excellence. With the right editorial team, some of whom we already have and some of whom we are recruiting, we should be able to produce two to three prime-time stories a day that have what it takes to become the talk of the town. Another option is authors and columnists who present surprising approaches and also give the paper an intellectual profile. As you can see, there is plenty of potential for differentiation.
These guidelines could also come from the new editor-in-chief of the Tages-Anzeiger, Peter Hartmeier.
Hagger: Journalistic competition stimulates business, even internally. But compared to the Tagi's editorial budget, which is many times higher, the "Express" is fighting a rather short battle. But with all the greater commitment.
Should the official gazette "Tagblatt der Stadt Zürich", which is included in the home delivery of the "Express", also offer its own editorial services?
Hagger: It actually has to. The current contract with the city obliges us to do so. And we are happy to provide this public service conscientiously. However, the content of the commuter newspaper and the Tagblatt will be complementary, i.e. they will not compete with each other.
How many of the eight planned "Tagblatt" pages will not be filled by official advertisements?
Hagger: That depends on the daily schedule. I assume two editorial pages, the rest are official and commercial advertisements as well as classified ads.
From next spring, Tamedia will therefore be publishing three Zurich daily newspapers. For the sake of clarity, it would be helpful to divide up the advertising market accordingly: for example, the image campaigns for the Tages-Anzeiger, the recommendation ads for the "Express" and the classifieds for the "Tagblatt".
Hagger: Such a demarcation is unrealistic and does not meet the needs of the advertising market, let alone the competitive situation in the commuter market. The "Tagblatt" and "Express" are positioned in a commercially complementary way and their rates are aligned according to their reach and reader structure.
In analogy to the full house of Tagi and SonntagsZeitung, other in-house combinations would also make sense.
Hagger: We will certainly examine sensible options in detail in due course. But first we will have to wait and see how the market takes to the new products. This process can only be controlled to a limited extent.
Distribution, on the other hand, is very precise. It is surprising that Tamedia continues to provide its logistics to arch-enemy 20 Minuten despite its official declaration of war. In view of the martial rhetoric of your boss, it seems imperative to terminate this contract for the supply of boxes and colportage.
Hagger: I see it differently. I have no problem with Tamedia utilizing its distribution capacity and earning good money with it. Besides, 20 Minuten would otherwise simply set up its own structures. So nothing would be gained by terminating the contract, but something would be lost, namely an interesting contract.
How many colporteurs will be deployed at the beginning of April?
Hagger: The launch date has not yet been set. We will be working with over 100 colporteurs, selecting them very carefully and preparing them for their task as far as possible. After all, they are our product managers on the front line.
You can also control the printing of the "Express". Almost half of the initial print run of 300,000 copies has to be produced externally. Who has now received the printing order?
Hagger: Tamedia will print a large part of the "Express" circulation and the "Tagblatt" itself. Until we put our new, even more efficient printing presses into operation in mid-2004, the Zehnder company in Wil will print the remaining, also large part of the "Express" circulation.
See also page 20
