Fatal fixation on Zurich
Tamedia What strategic options does the Zurich media group have after the P-NZZ deal? The solution is in the drawer - from Ringier.
Tamedia What strategic options does the Zurich media group have after the P-NZZ deal? Following the NZZ Group's acquisition of Zürcher Unterländer and Zürichsee-Zeitung, the industry is hotly debating what Tamedia will do now. Only very general statements can be heard from the Zurich media company itself. Tagi editor-in-chief Peter Hartmeier, for example, is quoted as saying: "Now we know where we stand and that we have to build on our own strengths." And Tamedia spokeswoman Franziska Hügli doubles down with the statement: "It is clear that we will continue to develop the Tages-Anzeiger under our own steam. "No taboos - or are there ...
Much more concrete information can be found in an interview with Peter Hartmeier in the in-house newspaper doppelpunkt this spring. There, Hartmeier emphasized that there were no taboos in the further development of the Tages-Anzeiger. Among other things, the question was raised as to whether the Tages-Anzeiger should be further developed as a newspaper purely for the city of Zurich and whether a newspaper for the surrounding area should be founded at the same time. However, the conclusion was then reached that "we don't want to make a compact newspaper, but rather a complete political newspaper. We don't want to touch the identity, the unmistakable character of the Tages-Anzeiger, but rather develop it further." From this perspective, there is a taboo after all. The Tages-Anzeiger is only to be adapted, but not radically changed. Perhaps this should be reconsidered after all.
The main problem with today's traditional daily newspapers is that they have to cover the needs of the entire population of a certain geographical area. However, these needs are increasingly heterogeneous. A newspaper for everyone is thus becoming a fiction. 20 Minuten is the best proof that you can also make progress in the newspaper market by thinking in terms of target groups. What does this mean for the Tages-Anzeiger? It must decide on a target group and, if necessary, launch a new title for a target group that has been neglected as a result. Although this strategy is expensive, it is hardly significantly more expensive than the rumored launch of regional splits for individual regions of the canton of Zurich. Such regional splits could actually only achieve one thing: Wear down the competition with bloated marketing costs until they give up. In view of the latest deal between NZZ and PubliGroupe, however, the chances of success of such a strategy have diminished considerably. It would drive the land publishers, who still need to be softened up, directly into the arms of the NZZ, which, with the support of the "P", is likely to do everything in its power to ensure that Tamedia's strategy does not work.
The solution lies rather in the apparently rejected idea of concentrating the Tages-Anzeiger on a narrower area and launching a new title. However, Tamedia should not continue to fixate so doggedly on the canton of Zurich. This is probably one of the reasons why the Group is not making any progress. This becomes clear when one compares the sales of the three major Zurich publishing houses last year with those of 1996. While Tamedia's turnover practically stagnated (-0.6%), it grew by 34.1 percent at NZZ and 17.2 percent at Ringier. If one compares the strategies of the publishing houses, one possible explanation is obvious: Tamedia generated most of its turnover in the greater Zurich area. NZZ, on the other hand, acquired sales in various regions of German-speaking Switzerland, while Ringier expanded primarily abroad. As a result, Tamedia has a significantly higher cluster risk than the other two publishers.
With the purchase of 20 Minuten, it has reduced this cluster risk somewhat. The regional editions in Basel, Berne, recently Lucerne and soon probably also in St. Gallen are likely to generate a good ten million francs in sales this year. A regionalization strategy for the Tages-Anzeiger throughout the whole of German-speaking Switzerland would be an obvious next step. However, apart from the high costs, this would be just as pointless as regional editions in the canton of Zurich.
Compact for the discerning
Instead, the solution lies in launching a new newspaper that complements 20 Minuten and the Tages-Anzeiger. The Tagi would focus more strongly on the greater Zurich area and completely abandon its national claim. At the same time, a new Swiss-German daily newspaper would be launched in tabloid format, a high-profile but very compact publication for discerning readers. It would contain short articles and commentaries on political, economic and sporting events in Switzerland and abroad.
The target audience would primarily be people in management positions who, in their busy schedules, hardly have time to find the information relevant to them in a conventional daily newspaper. In contrast to 20 Minuten, such a newspaper should not be free. It would have to be distributed throughout Switzerland in early morning deliveries so that the target group could read it on their way to work.
It can be assumed that the daily newspaper project, which has been dormant in a Ringier drawer, looks something like this. In contrast to the competition from Dufourstrasse, however, Tamedia has a much better chance of getting off to a good start in terms of resources. For example, it can divide the current (very large) editorial team of the Tages-Anzeiger between the two titles and make targeted additions. For the launch, it can rely on the subscribers of Tages-Anzeiger, SonntagsZeitung and Facts.
It is clear that the Tages-Anzeiger would lose circulation as a result of such a new newspaper. However, as a regional newspaper for the greater Zurich area, it would have a much clearer perspective than it does today. And the NZZ would have clear competition and would perhaps have to consider whether its old aunt needs an occasional facelift.
NZZ and PubliGroupe strengthen the fronts against the Tages-Anzeiger. Tamedia has reacted calmly so far, but is clearly under pressure to act.
Ueli Custer
Much more concrete information can be found in an interview with Peter Hartmeier in the in-house newspaper doppelpunkt this spring. There, Hartmeier emphasized that there were no taboos in the further development of the Tages-Anzeiger. Among other things, the question was raised as to whether the Tages-Anzeiger should be further developed as a newspaper purely for the city of Zurich and whether a newspaper for the surrounding area should be founded at the same time. However, the conclusion was then reached that "we don't want to make a compact newspaper, but rather a complete political newspaper. We don't want to touch the identity, the unmistakable character of the Tages-Anzeiger, but rather develop it further." From this perspective, there is a taboo after all. The Tages-Anzeiger is only to be adapted, but not radically changed. Perhaps this should be reconsidered after all.
The main problem with today's traditional daily newspapers is that they have to cover the needs of the entire population of a certain geographical area. However, these needs are increasingly heterogeneous. A newspaper for everyone is thus becoming a fiction. 20 Minuten is the best proof that you can also make progress in the newspaper market by thinking in terms of target groups. What does this mean for the Tages-Anzeiger? It must decide on a target group and, if necessary, launch a new title for a target group that has been neglected as a result. Although this strategy is expensive, it is hardly significantly more expensive than the rumored launch of regional splits for individual regions of the canton of Zurich. Such regional splits could actually only achieve one thing: Wear down the competition with bloated marketing costs until they give up. In view of the latest deal between NZZ and PubliGroupe, however, the chances of success of such a strategy have diminished considerably. It would drive the land publishers, who still need to be softened up, directly into the arms of the NZZ, which, with the support of the "P", is likely to do everything in its power to ensure that Tamedia's strategy does not work.
The solution lies rather in the apparently rejected idea of concentrating the Tages-Anzeiger on a narrower area and launching a new title. However, Tamedia should not continue to fixate so doggedly on the canton of Zurich. This is probably one of the reasons why the Group is not making any progress. This becomes clear when one compares the sales of the three major Zurich publishing houses last year with those of 1996. While Tamedia's turnover practically stagnated (-0.6%), it grew by 34.1 percent at NZZ and 17.2 percent at Ringier. If one compares the strategies of the publishing houses, one possible explanation is obvious: Tamedia generated most of its turnover in the greater Zurich area. NZZ, on the other hand, acquired sales in various regions of German-speaking Switzerland, while Ringier expanded primarily abroad. As a result, Tamedia has a significantly higher cluster risk than the other two publishers.
With the purchase of 20 Minuten, it has reduced this cluster risk somewhat. The regional editions in Basel, Berne, recently Lucerne and soon probably also in St. Gallen are likely to generate a good ten million francs in sales this year. A regionalization strategy for the Tages-Anzeiger throughout the whole of German-speaking Switzerland would be an obvious next step. However, apart from the high costs, this would be just as pointless as regional editions in the canton of Zurich.
Compact for the discerning
Instead, the solution lies in launching a new newspaper that complements 20 Minuten and the Tages-Anzeiger. The Tagi would focus more strongly on the greater Zurich area and completely abandon its national claim. At the same time, a new Swiss-German daily newspaper would be launched in tabloid format, a high-profile but very compact publication for discerning readers. It would contain short articles and commentaries on political, economic and sporting events in Switzerland and abroad.
The target audience would primarily be people in management positions who, in their busy schedules, hardly have time to find the information relevant to them in a conventional daily newspaper. In contrast to 20 Minuten, such a newspaper should not be free. It would have to be distributed throughout Switzerland in early morning deliveries so that the target group could read it on their way to work.
It can be assumed that the daily newspaper project, which has been dormant in a Ringier drawer, looks something like this. In contrast to the competition from Dufourstrasse, however, Tamedia has a much better chance of getting off to a good start in terms of resources. For example, it can divide the current (very large) editorial team of the Tages-Anzeiger between the two titles and make targeted additions. For the launch, it can rely on the subscribers of Tages-Anzeiger, SonntagsZeitung and Facts.
It is clear that the Tages-Anzeiger would lose circulation as a result of such a new newspaper. However, as a regional newspaper for the greater Zurich area, it would have a much clearer perspective than it does today. And the NZZ would have clear competition and would perhaps have to consider whether its old aunt needs an occasional facelift.
NZZ and PubliGroupe strengthen the fronts against the Tages-Anzeiger. Tamedia has reacted calmly so far, but is clearly under pressure to act.
Ueli Custer
