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Capstone Project Presentation

Defining the Luxury Magazine

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Author: Lina Gantar, MLUX Mentor: Dr. Marie-Cecile Cervellon Program Director: Annalisa Tarquini

Monaco, February 2013


AGENDA 1. PERIODICAL PUBLISING IN THE U.S. KEY PLAYERS LIFESTYLE SEGMENT ↵ 2. CONDE NAST CONDE NAST - TODAY CONDE NAST - LUXURY CONDE NAST VS. TIME INC. ↵   3. LUXURY PUBLISHING CHARTWELL MAGAZINE LUXURY PR ↵   CONCLUSION


PERIODICAL PUBLISHING IN THE U.S.

Periodical Publishers publish magazines and other periodicals in print or electronic form.

Segmentation 7.5%  

1.1%

Academic and   professional  periodicals  

7.5% 28.9%  

Entertainment magazines   General  Interest   magazines  

13.1%

Home and  living   magazines   Business  journals   Political  journals  

14% 27.9%  

Other periodicals  

Source: IBISWorld  

55% represent category – Magazines.

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Key players 4 major players – 20.9 % industry share TIME INC. CONDE NAST HEARST MEREDITH 8.8%

6.7%

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3.4%

2%


Lifestyle segment And affluence Most magazines of major players are Lifestyle Magazines. Readers of Top 31 selling magazines from Time Inc., Conde Nast, Hearst Average Household Income = $85,035 Twice the median HI in U.S. (U.S. Census Bureau)

Readers of lifestyle magazines belong to higher social class.

LIFESTYLE MAGAZINES READ BY AFFLUENT CONSUMERS! Average % of affluent readers = 34.29% % of readers in top 20% wealthiest households in U.S.

18 magazines with Mendelsohn affluent data

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1 2

CONDE NAST history

Conde Montrose Nast defines ‘class publication’: “…it looks for its circulation only to those having in common a certain characteristic marked enough to group them into a class… the publisher, the editor, the advertising manager and the circulation man must conspire not only to get their readers from that particular class to which the magazine is dedicated, but rigorously to exclude all others. Class publications don’t happen by accident. Every publisher must make up his mind whether he shall edit a publication for the whole heterogeneous reading population, or deliberately aim to attract some special segment of it. (Angeletti and Olivia, 2006).

Conde Nast grew with this vision à

Segmentation and Lifestyle are in its Brand DNA!

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CONDE NAST today 25 magazine and online brands focusing on fashion, travel, cooking, golf and men.

Revenue Model

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CONDE NAST USING Luxury strategies þFlagship Concept – Conde Nast Worldwide Newsstand

þDesigner Concept – capitalizing on their editors þJoint Ventures & Co-Branding

þHeritage of Conde Montrose Nast þBrand extensions (other) Conde Nast College of Fashion & Design Conde Nast Bookstore

þSponsoring Events þInternational expansion – global

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CONDE NAST Vs. time inc. BRAND DNA Time Inc.

Conde Nast

Online definition: “...one of the largest branded media companies in the world… Time Inc. has owned some of the biggest news stories of the decade…”

Online definition: “...home of some of the world’s most celebrated media brands… Conde Nast has won more awards over the past ten years than all its competitors…”

History: 20s – Time magazine (news) 30s – Fortune magazine (news) 70s – People (lifestyle)

History: 20s – Vogue, Vanity Fair (lifestyle) 30s – American Golfer, Glamour (lifest.) 70s – Self, Brides, New Yorker (lifest.)

Brand DNA = Reporting News

Brand DNA = Superior Lifestyle

BRAND EXTENSIONS Conde Nast is well ahead of Time Inc. à it is using and capitalizing on its brand and on the brands of its magazines à stronger brand recognition and awareness.

INTERNATIONAL EXPANSION Time Inc. Acquiring foreign media companies

Conde Nast Spreading globally as Conde Nast

Conde Nast and its magazines à higher global recognition and brand awareness.

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LUXURY PUBLISHING VS. PUBLISHING LUXURY

Variable/Magazine

Vogue UK

Circulation

205,033 (VogueMediaKit) 5,000

Distribution

Single Copies – Newsstand, Subscription

Single Copies – Sent to private Clients Boxes – Sent to Hotels/Spas/Partners

Source of Revenue

Subscription, Sales, Ads

Ads

Main Purpose of Publication

Revenues

Promotion

How they HNWI? Readers

target With content Affluent – est. 35%

Chartwell Magazine

With distribution and content Affluent – 100% Source: produced  by  author  

Luxury Publishing: Selective Distribution & Luxury Experience

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CHARTWELL MAGAZINE Using LUXURY THEORY AD-RATES Rates/Magazine Candy & Candy

Mayfair

Chartwell

1-page ad

£ 6,000

£ 6,990

£ 1,875

Back Cover

£ 10,000

N/A

£ 3,125

Inside BC

£ 6,900

£ 8,625

£ 2,185 Source: produced  by  author  

CONTENT

DISTRIBUTION

SOCIAL MEDIA

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LUXURY PR How do press events matter

Luxury Industry  

Lifestyle Magazines  

PR Industry  

Luxury Press Events

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conclusion How does it all correlate

Periodical Publishing  

Magazines

Lifestyle Magazines  

Luxury Magazines  

Luxury Magazine:   A magazine read by predominantly affluent consumers who are targeted with selective distribution and luxury lifestyle content. It provides more than just the content, but also a luxury experience through its high print and production quality. It capitalizes on its brand or on the brand of its parent company.

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SOURCES

1. Angeletti and Oliva (2006): In Vogue. Rizzoli International Publications Inc. New York. Pages 10 – 25. 2. IBISWorld Industry Report: Magazine and Periodical Publishing in the US, August 2011. 3. U.S. Census Bureau (online). Available at: http://www.census.gov/ 4. Vogue UK Media Pack (online). Available at: http://digitalassets.condenast.co.uk.s3. amazonaws.com/static/condenast/vogue-mediapack-integrated-november-2012.pdf

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THANK YOU FOR YOUR ATTENTION

Q&A


© 2013  Lina  Gantar  

Defining Luxury Magazine  

Presentation of Master's thesis covering Periodical Publishing, Conde Nast Company Analysis and internship experience at Chartwell Magazine.

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