In an evolving industry like the media industry, companies need to create and develop innovative strategies to keep abreast with the dynamic needs. Gannett has employed innovative strategies in marketing its product, USA Today, which has dominated the media industry in the United States and across the world. Thus, case analysis seeks to demonstrate how USA Today employed innovative strategies in adapting to challenges in the media industry and remaining competitive.
Seized Opportunities
Gannett seized numerous opportunities in the marketing environment, which boosted its competitiveness in the United States markets. To improve its competitive advantage, Gannett created and adopted innovative strategies targeting product quality, extensive promotion, and timely distribution. Gannett discovered the opportunity of product innovation in the media industry and seized it to meet unique and diverse needs of its customers. Since the mainstream media focused on soft news, Gannett decided to differentiate itself by providing news-oriented newspapers with hard news and reader-driven content (Thornton & Alvares, 2016).
Besides, Gannett offered free customer care services on important matters, such as taxes, business development, financial planning, and college admissions, by allowing its customers to call hotline numbers. Gannett undertook extensive research among its customers to determine the nature of attributes and features they require in newspapers. In 2000, Gannett redesigned USA Today by adding appealing colors and reducing the size while ensuring that the contents are brief, readable, and informative. Such innovations in product bolstered the competitiveness of USA Today and USA Today.com in the United States for they have attracted and satisfied customers amply.
Having reduced its promotional activities, USA Today also seized the opportunity of promotion to expand its market share not only in the United States but also globally. USA Today undertook promotion tour in 50 states in the United States to expand the local market and 30 countries to trigger global demand. Gannett launched USA Today International, which is a global newspaper present in over 60 countries in the European, North African, Asian, and Middle Eastern regions (Ferrell & Hartline, 2011). To overcome the challenge of reduced advertising, USA Today provided free space to customers who paid for six months advertising and front-page adverting to customers who signed for a year contract. Distribution innovation is another opportunity that Gannett seized when it realized that delays and lateness of newspapers gave USA Today competitive disadvantage in the local and international markets. In this case, Gannett improved timely delivery of news by doing its presses early when compared to The Wall Street Journal, opening print sites across the world, and digitalizing newspapers to boost online distribution (Ferrell & Hartline, 2011). Thus, distribution innovation has enabled Gannett to expand market share of USA Today and USA Today.com and boost their sales both locally and internally.
Successfulness of Marketing Innovation
The examination of marketing innovation that Gannett employs in boosting the performance of USA Today and USA Today.com in the competitive markets proves to be effective and successful. Marketing innovation strategies of product innovation, promotion, and distribution have enabled Gannett to make tremendous changes in its products, USA Today and USA Today.com. Increasing costs and declining sales prompted Gannett to different USA Today. Ferrell and Hartline (2011) report that Gannett came up with additional newspapers, namely, Baseball Weekly, Sports Weekly, USA Today’s Open Air, USA Today Online, and USA Today.com, which boosted the performance of USA Today. Digitalization of news to meet the needs of customers has made USA Today.com be the most favorable newspaper. Hence, the ability of Gannett to create innovative products that meet diverse needs of customers, perform extensive promotion of print and online newspapers and global distribution of newspapers through the Internet has proved to be successful and enduring strategies of USA Today and USA Today.com.
The analysis of the current market stance and competitiveness of USA Today indicates that it is strategically placed for the future. Since the print media is expensive to produce and distribute, USA Today has shifted its focus to online media in the production and distribution of news across the world. Saperstein (2014) reports that major newspapers, such as The Wall Street Journal, The New York Times, The Washington Post, and USA Today have experienced decline in print media readership due to the emergence of digital newspapers. Given that USA Today is keeping abreast with the technological advancements by providing customized news through various online platforms, it remains competitive and position for the future of technology. According to Kaufman (2014), USA Today is increasing its readership by providing newspapers through online platforms, such as USA Today Online, USA Today.com, and major social media sites. By creating relevant and brief content in online newspapers, USA Today attracts more readers. Therefore, by using online platforms, designing appropriate content, and undertaking extensive advertising, USA Today is poised to position itself well in the markets and dominate the media industry.
SWOT Implications
SWOT analysis shows that USA Today is ready and able to compete effectively in the media industry in the United States and across the world. As one of the strengths, USA Today is a newspaper that dominates print and online media because it serves 14 million readers daily and 27.1 million online readers per month. The creation of innovative contents, which are attractive and informative, is a strength that portrays USA Today as serious and responsible media. Multiple brand extensions in online platform enable USA Today to target extensive markets and optimize its sales given that print media readership is declining gradually. The existence of robust distribution in the online environment has empowered USA Today to buttress its competitive roots in the international markets. Additionally, USA Today has numerous opportunities to explore and exploit in the media industry. The increasing use of mobile phones creates the demand for digital media and offers a novel market opportunity for USA Today to target. Technology tools such as the Internet, social media, and mobile applications provide enabling opportunities for USA Today to venture into global markets and expand its markets. Hence, USA Today needs to leverage strengths and opportunities above to become competitive in the media industry.
A weakness of USA Today is that it relies heavily on revenues from print media, which is declining with time. Another weakness is that majority of customers of USA Today are in the United States despite undertaking extensive marketing and having an excellent online presence. Limited online subscribers do not provide sufficient revenue to offset expenses incurred in the digital environment. The declining revenues from the print media coupled with the emergence of digital media threaten mainstay of USA Today. Stiff competition from main rivals, The Wall Street Journal and The New York Times, threatens market share of USA Today. The demand for free news in the digital environment reduces returns and weakens the sustainability of USA Today in the media industry.
Print and Digital Media
Notably, while technological advancements have influenced all sectors of humanity, the print media has experienced significant impacts introduced by technology. Although the introduction of digital media is a milestone in the information sector, it presents a threat to the existence of print and other mainstream media. Thornburg (2015) explains that unlike print media, digital information takes a short time to produce and convey messages across several locations. Moreover, the information shared through online platforms is accessible to a wide array of individuals around the globe. It is important to note that whereas the digital media continues to gain popularity in the long-term, print media remains relevant. The relevance of print media stems from the quality of information that they convey.
Given that digital platforms can relay messages to millions of people globally at once, the validity of such information hinges on print media. As such, print media, which comprise newspapers and periodicals, continue to remain relevant even in the face of the increasing competition from the digital media. One of the factors that can help the print media to retain their market share, which is diminishing, is the improvement of the supply chain and distribution channels (Thornburg, 2015). By improving their modes of distribution and supply, print media can outsmart the digital media, which is gradually taking a higher market share. Therefore, it is conclusive to state that in the long-term, the market share held by print media can diminish if they fail to institute redress frameworks in time.
Conclusion
The analysis of USA Today shows that it has grown through turbulent markets and emerged as one of the leading newspapers in the United States. The exemplary performance of USA Today and USA Today.com in the media industry emanates from deliberate innovative strategies created and developed by Gannet. Innovative marketing strategies in the aspect of innovation, distribution, and promotion have increased competitive ability of USA Today. Growing advancements in technology are causing the print media to decline and the digital media to grow in the media industry.
References
Ferrell, O., & Hartline, M. (2011). Marketing strategy (5th edn.). Mason, OH: Cengage Learning.
Kaufman, L. (2014). USA Today goes viral.The New York Times. Web.
Saperstein, T. (2014). The future of print: Newspapers struggle to survive in the age of technology.Harvard Political Review. Web.
Thornburg, R. (2015). Producing online news: Digital skills, stronger stories. Washington, D.C: CQ Press.
Thornton, L., & Alvares, C. (2016). The road to “reader-friendly”: US newspapers and readership in the late twentieth century. Cogent Social Sciences, 2(1), 1-13. Web.