On stage in Singapore, from left, Jochen Krauss of Simon-Kucher and Partners; Lulu Terianto of Bisnis Indonesia Group; and moderartor Joji Philip, Founder & Editor-in-Chief, DealStreetAsia. Photo by WAN-IFRA
By Shobi Pereira
Speakers at WAN-IFRA’s recent Publish Asia conference shared some of the factors that go into pricing considerations, marketing tactics and attractive add-ons to ensure that subscribers believe they are getting good value for their money.
Lulu Terianto, President Director of the Bisnis Indonesia Group, which publishes Indonesia’s largest business paper, Bisnis Indonesia Daily, described the measures her company has undertaken to keep the 33-year-old paper relevant to their audiences.
Tactics include taking regular transformative steps to improve their offering so it is more appealing to readers. The paper is delivered to corporates, young business leaders and millennials. In wanting to cater to diverse audience segments, it also keeps up with the latest trends.
When it comes to pricing, Terianto said “we believe in a good product with good pricing.” She added that this must be balanced with efficiency in the cost of production.
However, Terianto said, it is ultimately about keeping the company’s biggest asset – its people – happy and productive, bolstered by a firm, positive belief that the newspaper industry has room to evolve and grow.
Pricing consultant Jochen Krauss, of Simon-Kucher and Partners, reminded the audience that the main driver of prices is having a good product.
“Nobody is willing to spend money on a product or service if the product is not perceived to be good,” –Jochen Krauss
He also discussed the importance of setting clear goals to be achieved as the foundation for a good pricing strategy.
When it comes to the psychology of appealing to a buyer, Krauss said it is possible to increase their willingness to pay for digital content.
He said publishers should consider what it is they want to achieve in the end, the target segment, and what actions one needs to take in order to drive that segment.
The goal should be to find out where the product’s value comes from and then find ways to make customers pay for it.
Krauss cited The Economist’s various pricing bundles and Starbucks which, actually has four, not three, cup sizes. The smallest cup size is not advertised, but it can be requested.
In both examples, he said, the nature of the product has not been changed at all. Instead, the way in which one accesses the product can make it more attractive for the customer.
About the author: Shobi Pereira is the MD of Shobi Pereira Communications and a former civil servant and news presenter with Bloomberg, Norwegian Broadcasting Corporation, CNN, Television Corporation of Singapore and Singapore Broadcasting Corporation.