Kannon’s client is a daily metropolitan newspaper with a Sunday circulation of over 450,000. The client needed to grow revenues and capture additional market share in a complex, competitive environment. The situation called for changes in the company’s processes and culture. There was increasing pressure to boost revenues, but what was the best approach? Did existing products, pricing and sales force alignment fully meet the needs of core advertisers?
Through its Outside-In approach, Kannon documented customer attitudes and behavior, identified external perceptions of the client’s newspaper, segmented existing newspaper advertisers, and identified new business opportunities. The goal was to ensure that the client’s newspaper became a vehicle that advertisers found effective. Kannon took an innovative approach and segmented advertisers based on attitudes and behavior toward media advertising. Kannon identified market segments vital to defend (such as food and grocery accounts) and those important to grow (including health-care and pharmaceutical firms). Kannon then devised strategy recommendations to maximize the value of each segment.
To address a weakness in existing sales strategy, the client created an entirely new business division that was separate and distinct from the newspaper’s regular advertising department. Sales revenues from this lucrative channel grew from zero to $4 million in less than five years.
Kannon’s strategic research also inspired the client to enter the events business. The client developed this previously untapped source of revenue by creating trade shows, selling booth space and other show-related advertising. Since its inception, the client’s events marketing group has tripled revenues – from $200,000 to more than $600,000 annually. Through effective analysis of market needs, Kannon helped drive nearly $13 million in total new revenue for the client, and strongly positioned the newspaper for continued success.
“Kannon’s situational market analysis was pretty eye-opening, and they materially moved us forward,” said the client’s General Manager at that time. “We needed results quickly, and they understood that need. We had trouble organizing our business and motivating our sales staff to sell new products. Kannon’s research showed that our sales reps were not acting as marketing consultants with solutions.”
“Kannon provided personalized service, raised important issues we hadn’t even thought of, and generated focused, actionable recommendations,” the GM added. “They taught us that business reorganization requires a genuine focus from senior management to make it work. … a valuable lesson for us to learn. Kannon helped us establish a solid infrastructure we could build on. One of their most valuable contributions was a continued insistence on considering the customer’s point of view and engaging them in productive dialogue. Ultimately, Kannon’s structured approach helped us prioritize our efforts and generate substantial new revenues.”