The document summarizes the brand positioning and value proposition of The Economist newspaper. It discusses how The Economist started as a weekly commercial newspaper in 1843 and became one of the first publications to invest in brand building through market research and differentiated advertising campaigns. The Economist targets an audience of intellectually curious global professionals and positions itself as an independent analyst providing clear reporting and analysis on world affairs. While it faces challenges of maintaining exclusivity and competing with free online resources, The Economist continues to build its brand through various pricing promotions and channels to appeal to its target readership.

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2. The
Economist
Interpret the world.
Sharaddha Sareen / Aravind Suresh
PGCIM 2013-14
Interpreting

3. A brand is born
• Started as a weekly commercial newspaper, in 1843
• Became one of the first to invest in brand-building, in
1988
• Conducted market research amongst target audience
• Came out with a highly differentiated poster campaign
• Carved out a niche position for itself
• Bagged more than 70 advertising awards
• Created a premium club image among customers
• Holds good till date…

4. “There’s always something in there which you can
use to drop into conversation which make you seem
really clever. I wouldn’t admit it but it’s great for
impressing people.”
- A respondent, at the 1988 survey
Lose the ability
to slip out of meetings
unnoticed.
The Economist

5. The backdrop
• Company
• Hedonic brand
• Connects business and politics
• Claims strong PoDs like ‘no by-lines’ and ‘weekly newspaper’
• Competitors
• No real competition
• Closest are Financial Times and TIME
• Customers
• The niche ‘higher’ reader
• Collaborators
• Book stores
• Colleges
• Climate
• Flurry of newspapers and magazines
• The brand maintains its position around the world

6. The seeker of value
• Directed at “the worldly, intellectually curious.”
• Many people start to read The Economist “after it’s
recommended by a mentor, a professor, a parent,”
• Start at a life stage where they are “open to new
habits, new ideas”
• A reader of The Economist in US enjoys average
yearly income of $175,000 and average net
household worth of around $1.7 million

7. Creating value
• Segmentation criteria
• Stage of life
• Education
• Occupation
• Income level
• Target Groups
• Senior corporate executives
• Students

8. The value proposition
To the curious reader, The Economist is a weekly
newspaper that delivers a compelling view of
the world over multiple platforms through
high quality independent analysis.

9. Positioning value
• Liberal, not conservative
• Commentator, interpreter and forecaster of the
phenomenon of globalisation
• High-quality, independent analyst
• Objectivity, through editorial anonymity
• Presence and strength across multiple platforms
"It is to the Radicals that The Economist still likes to think of itself as belonging.
The extreme centre is the paper's historical position“
- Geoffrey Crowther, Editor (1938 – 1956)

10. Value in words
• The Economist : a weekly international news and business
publication, offering clear reporting, commentary and
analysis on world current affairs, business, finance, science
and technology, culture, society, media and the arts.
• The Economist Intelligence Unit : provides country, industry
and management analysis worldwide.
• The Economist Store : the online store offers various books
(Brand and Branding etc.), diaries posters with excellent
quotes, etc.
“…not what you think it is. It's NOT about the economy. It's not dry or dull”
- Paul Rosi, Executive Vice President – Economist Group

11. Bringing value to the seeker
• Sales of 1.5 million copies, both by subscription
and at news agents, in over 200 countries
• Increasing online presence thorough website
and mobile apps
• Novel delivery channels, like Economist Radio
“In the UK print copies are dispatched late Thursday, for Friday delivery to retail
outlets and subscribers. Elsewhere, retail outlets and subscribers receive their copies
on Friday or Saturday, depending on their location.”
- The Economist Website

12. Appropriating value
• Hedonic pricing model
• Subscriptions priced 1.4 to 2.5 times above
TIME in India
• Promotes subscriptions at half the news-stand
price
• Online edition priced at par with print edition

13. Communicating value
• Out-of-the-box ad campaigns, like ‘White out of red’
• Social media campaigns directed at the youth
• Pricing promotions
• Promotes trial by offering 69% discount for 12 months, with auto-
renewal
• Encourages long-term contracts by offering discounts between 72% and
77%
• Targets students by offering 20% discount on list price and custom plans
• Bundles newer online modules with print edition and offering higher
discounts
“…opportunity…to get people to engage deeper and connect with the premium content …”
- Andreas Combuechen, Chairman – Atmosphere Proximity [Ad agency]

14. Changing Brandscape
• Re-branding campaign in 2009
• Focus on students and ‘Generation Why’
• Public Customer perception as right-wing
rather than neutral
“Rossi frets that a big challenge for the Economist is getting prospective readers to
shake off suspicions that it is a wonky periodical that's more of a homework
assignment than a day at the beach.”
- Paul Rosi, Executive Vice President – Economist Group

15. Challenges
• Exclusivity Vs Readership expansion
• Possible fall in advertising premium due to
dilution of exclusive audience
• Competition from free online resources provided
by credible sources
• Governmental restrictions in different geographies
• Subject to censorship in India whenever it depicts a map
of Kashmir
• Sale of The Economist banned in Iran
• Accused of hacking into the computer of Bangladesh
Supreme Court Justice, in 2012

16. Critics of the critique
“The Economist suffers from British class snobbery,
pretentiousness, and simplistic argumentation.”
- The Washington Post
“The Economist uses ‘marketing genius’ to make up for
deficiencies in analysis and original reporting.”
- New Republic

17. Sample survey
• 33% of respondents read The
Economist
• 55% of readers start at Graduation
• 50% believe online should be free
• 40% think TIME is the closest
competition
• 35% buy based on content
• 30% read it at their workplace/
college
Employee
28%
Self-
employed
24%
Professional
19%
Student -
Other
disciplines
19%
Employee -
Senior
Executive
5%
Unemployed
5%

18. Recommendations
• Do NOT dilute the brand
• Create awareness amongst young graduates
• Communicate content above price
• Sell multiple copies to libraries at institutions
and corporates
• Be conservative about online pricing

19. “You don’t want to be seen on the tube reading the
Mail but you’d be rather pleased if you were spotted
with a copy of The Economist under your arm”
- A respondent, at the 1988 survey
“I never read
The Economist.”
Management trainee, Aged 42

20. Thank You
- Sharaddha / Aravind