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TromeNews for the Base of the Pyramid


Guillermo DAndrea, IAE Business School, Austral University
Javier J. O. Silva, IAE Business School, Austral University
Maricruz Prado, IAE Business School, Austral University
On a hot morning in late
December 2001, the El
Comercio
Publishing
Companys Management
Committee held a meeting
in Lima, Peru. The atmosphere at the meeting was
quite different than it had
been six months before,
when El Comercio had
launched Trome, a newspaper for low-income families. See Exhibit 1 for El
Comercios organization
chart.

General Manager Csar Pardo Figueroa Turner opened


the meeting with an announcement, Despite our extensive research on readers behavior and our marketing
plan, sales over the past six months have increasingly
failed to meet our expectations. I dont know what we are
going to do. We just cant let our readers, advertisers and
shareholders down. We must remember our actions can
jeopardize El Comercios reputation and leadership.

Bernardo Roca Rey Mir Quesada,


Publications
and
Multimedia
Director, ventured, We should reformulate our content style, because I
believe were not reaching readers as
we hoped we would. Perhaps our
vocabulary and design are not the
right ones.

Ral Hernndez, Tromes Director,


demanded, Why dont we stick to a
style that we know works? I m sure
our readers want content that is similar to those offered by our competitors, with a focus on sex and violence.

Copyright 2009 by the Case Research Journal, Guillermo DAndrea, Javier Silva, and Maricruz Prado.
The authors wish to thank Pedro Jos de Zavala, El Comercios senior marketing manager, for his cooperation and consideration in preparing this case. The authors also wish to thank the anonymous reviewers
who provided very useful comments and suggestions, and Lew Brown for his insightful comments and recommendations that strengthened the case. An earlier version of this case was presented at the North
American Case Research Association annual meeting, October 30November 1, 2008, Durham, New
Hampshire. This case was prepared by the authors for the sole purpose of providing material for classroom
discussion. It is not intended to illustrate either effective or ineffective handling of a managerial situation.

TromeNews for the Base of the Pyramid

This document is authorized for use only in Marketing Estrat?gico DMGC10 by Pedro Jos? De Zavala, Universidad del Pacifico from November 2015 to April 2016.

However, Alberto Cendra Astiz, New Business Senior


Manager, disagreed, I think we cant change our content. Anyway, I feel our cutlery promotion is not catching readers attention as expected. Besides, street salesmens initial refusal to sell our paper hampered our
launching. While most of our ads were on the air, the
newspaper was not available on the streets! We should
relaunch our paper with more advertising and new promotions.

Pedro Jos de Zavala, El Comercios


Marketing Senior Manager warned
the other members of the committee,
Look, with no circulation, I cant sell
any advertising! We have to consider
whether this paper is really viable. As
sales drop, so does our appeal for
advertisers. What if we misunderstood our reader segments and ended
up launching the wrong paper?

Clearly, we need to take steps to remedy sales drops. Im sure well figure it out
and make it work, asserted Csar Pardo
Figueroa.

EMPRESA EDITORA EL COMERCIO (EEEC)


Founded in May 1839, El Comercio, the oldest newspaper in Latin America, served as
the backbone for Empresa Editora El Comercio (EEEC). For most of its life, the newspaper had belonged to the Mir Quesada family. Since inception, it was committed to
independent journalism, with no political affiliationa rather uncommon trait in Latin
America, where most newspapers usually conveyed their political preferences. El
Comercios history merged with that of the owners family, who were always involved in
the newspapers management, ensuring that its track record and rigorous style turned it
into Perus most reliable newspaper and one of its most influential media.
EEECs scope focused on El Comercios printing, publication and distribution. The
newspaper was an undisputed leader among top (A and B) socio-economic strata
(SES),1 as measured by unaided recall and most frequently read newspapers. Exhibit 2
shows Perus demographic data and describes its capital citys socio-economic composition.
Since 1999, the company had invested in several mediapress, cable TV, Internet
and radiobusinesses, becoming the nations largest multimedia corporation and offering advertisers multimedia contracts to exploit its synergies. In 2001, the company had
introduced a new newspaper, Trome, for lower (C, D and E) SES. Company revenues
came from three major sources: newspaper sales, advertising and optional products.
In late 2001, El Comercio and Trome copy sales accounted for 23.6 percent of the
companys revenues. Both newspapers were distributed indirectlyby 1,200 canillas2 in
Lima, the nations capitaland directly. The indirect channel sold 86.8 percent of the
newspapers circulation, while direct sales to stores like supermarkets, gas stations, convenience stores and subscriptions accounted for the rest. El Comercio, with its unique
formatit was the only standard-sized, broadsheet (600mm by 380mm or 23.2" by
2

Case Research Journal Volume 28 Issue 3 and 4 Summer/Fall 2008

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15") newspaperand its S/2.00 price (S/0.50S/1.50 above all other newspapers in
Lima), largely attracted upscale readers.3 However, on Sundays, its circulation and readership doubled as lower socio-economic segments (C, D and even E) scouted its pages
looking for job and business opportunities listed in its classified ad section. Trome was
a popular newspaper, designed to reach lower-income level households, printed in
tabloid format,4 and selling for S/0.50 from Mondays through Saturdays.
Advertising sales accounted for 57.5 percent of El Comercios revenues, but the countrys overall advertising market that neared US$189 million in 2001 had fallen by 6.4
percent as compared to the year before. More notably, 2001 advertising investments
were 44.6 percent below their 1997 total, US$341 million, as a result of a severe economic downturn.5 In an attempt to maintain its market share, most media had lowered
their rates, cutting down on their revenues. Perus major advertising media included
national television (capturing 43 percent of overall domestic advertising spending),
newspapers (33 percent), magazines (2 percent), radio (12 percent), and others, such as
street ads (10 percent).
EEEC offered several additional cultural and entertainment content products,
including books, magazines, brochures, CDs, printed materials, multimedia and video
products, which accounted for 19 percent of its sales in December 2001, up from their
5.1 percent share in December 1999. These additional products added value to its core
products and contributed to boost the companys revenues.

LIMAS NEWSPAPER MARKET


Perus capital city, Lima, accounted for 68 percent of the domestic newspaper copy market. Less than 41 percent of Limas population read at least one paper every day,
although the nations capital boasted nearly 22 different newspapers. While there were
no official data on printed media copies, advertisers and advertising agencies relied on
the information collected by newspaper and magazine readership studies conducted by
market research firms like CPICompaa Peruana de Investigacinfor their print
advertising decisions.
Limas market featured three prominent press groups: Empresa Periodstica Nacional
(EPENSA), which published the Ojo, Aj, Correo, and El Bocn newspapers and boasted a 41 percent share of overall copies; EEEC, owner of El Comercio and Trome newspapers and holding a 24 percent share of market copies; and, finally, Impresora Peruana,
owner of La Repblica, El Popular, and Lbero, with a 15 percent copy share.
Among its Lima-based competitors, El Comercios leading rival was EPENSA. Active
in journalism for over four decades, this companys strategy zeroed in on B, C, D and
E strata. Unlike EEEC, it boasted a large readership in other provinces outside Lima. Its
first paper was Correo, initially published in Tacna and later expanded to Perus major
cities, including Lima, where it was launched in 2000. As noted by Pedro Jos de Zavala,
When EPENSA found out that we were about to launch a popular paper, it decided
to introduce this newspaper in order to compete with El Comercio in Lima.
In the 1990s, EPENSA embarked on an intensely dynamic phase. It launched Aj,
which soon became the most successful newspaper on show business, and El Bocn,
which quickly turned into the best-selling sports newspaper. EPENSA also launched
Ojo, soon to become its flagship publication. Ojo was an easy-to-read tabloid that relied
on simple language and an emphasis on images, although it lacked the extreme sensationalism of popular newspapers and its priceS/1.50exceeded regular tabloid
prices.
TromeNews for the Base of the Pyramid

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In order to boost Ojo sales, the company started to give away collectible booklets as
part of its promotion efforts. However, this strategy later backfired, as, from then on,
the company had to support sales with promotional activities requiring significant
investments that undermined product profitability.
While both companies competed for copy sales, EPENSA barely held a 10 percent
share of the newspaper advertising market, as large advertisers used newspapers to reach
higher-income readers in the A and B segments, who preferred El Comercio. Thus, 60
percent of EPENSAs revenues came from Correo, Ojo, Aj, and El Bocn copy sales,
while advertising sales accounted for 26 percent of its revenues and optional products
(books, magazines and CDs), for 14 percent.
In turn, newspaper segmentation hinged on content, pricing, and target audience.
Exhibit 3 shows category and brand shares of overall readership, as well as prices, while
Exhibit 4 presents a categorization of readers based on expected benefits.
Serious, traditional newspapers included El Comercio, La Repblica, and Ojo. El
Comercio led this group, capturing 19 percent of overall newspaper readership in 2001.
These newspapers covered several issuescurrent events, politics, sports, entertainmentwith an objective, rigorous approach. Their readers largely belonged to highand middle-income segments, with an intermediate or higher education. Most were
businessmen, executives or employees. Within this segment, El Comercio stood in a category of its own, as it featured all the information on current events, politics, sports and
entertainment, coupled with an outstanding classified ad section.
In a lower price range, a large group of newspapers, including inexpensive serious
newspapers, sports newspapers as well as entertainment papers and tabloidsboth collectively referred to as popularwere sold at around S/0.50 a copy for easy access by
all socio-economic strata (SES).
The inexpensive, serious newspaper segment emerged in 2000, when Lima witnessed the launch of Correo. This newspaper had a significant circulation in other
Peruvian cities. At that time, the market was teeming with sensationalistic tabloids like
To, Men, El Chino, and others, locally known as chicha6 newspapers. They focused on
show-business and police news, and their widespread publication had been partly funded by Alberto Fujimoris government from 1990 through 2000. Selling at S/0.50 and
printing mostly political contents in a tabloid format, Correo grew rapidly, introducing
a new segment in Lima. During its first year, it managed to secure a 4 percent share,
increasing it to 9 percent over its second year. Its readers belonged to B and C population segments and were characterized as progressive, concerned about their environment
and keen on enhancing their families living conditions.
Another group that commanded 10 percent of the market included sports newspapers, a segment that had shown no variations in 19982001. EPENSAs El Bocn and
Impresora Peruanas Lbero were the leading players in this segment, where EEEC was
not involved.
A category of newspapers within the popular segment focused on entertainment
news and had experienced fast growth in recent years. While they targeted C, D, and E
segments, they appealed mostly to youngsters and women with their common-language
coverage of show business, entertainment and police news. Competing newspapers in
this segment included El Popular, Aj, and Trome, launched in 1984, 1994, and 2001,
respectively.
Newspapers were primarily sold by 3,700 existing canillas (95 percent of copies)
and, to a lesser extent, in supermarkets, grocery, and convenience stores (4 percent) or

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through subscriptions (1 percent). Every day, canillas (street salesmen) would pick up
newspaper copies from EEECs 24 distribution centers around Lima. A log recorded
copy deliveries, including the number of copies handed out to and sold by each salesman on a daily basis. Competitors would park their trucks near EEECs distribution
centers to deliver their papers to the very same salesmen.

TROMES LAUNCH
The crisis that swept across Peru in 1997, eroding the populations purchasing power
and driving overall sales down, eventually hit El Comercio, causing, for instance, its share
in Lima to drop from 25 percent to 19 percent. It was precisely then that EPENSA
launched its Correo in the capital city, where it quickly grew after its launching. See
Exhibit 5 for macroeconomic indicators.
Pedro Jos de Zavala recalled
Back then, we knew there were two distinctive business modelsproducts that prioritized advertising revenues designed for higher-income sectors, and low-priced products
for lower-income segments, whose business primarily hinged on circulation. El Comercio
belonged to the first group, and, therefore, the only way to expand coverage was to
develop a product that enabled us to reach new population segments and to avoid the
risk of focusing on a single product.

To assess the opportunity to offer a product for segments C and D and to identify
readers needs unsatisfied by other newspapers, a research study was commissioned to
Apoyo Opinin y Mercado.7 The purpose of this study was to determine the major benefits expected from 50-cent newspapers, as well as to outline leading popular newspapers image and positioning. In November 2000, several focus group studies included
25- to 55-year-old men and women from Limas C and D socio-economic strata, who
read and/or bought Aj, El Chino, El To, or El Popular newspapers, to unearth their purchasing and reading habits, their behavior in newsstands as well as readers met and
unmet needs.
Study findings revealed that:
Popular newspapers readers sought media that offered entertaining information in
an assorted, ingenious, non-vulgar fashion to read in their free time. For these population segments, a newspapers entertainment quality was crucial, especially for
leisure reading.
Readers in low-income segments also expected newspapers to support practical
improvements for their families living conditions. They valued an adequate coverage of health, food, education, and work-related news. Their customary saving of
articles and engagement in promotions proved this disposition.
Among current newspapers, Aj ranked at the top, while El Chino garnered critiques
for its crime-related articles. Both matched readers expectations with their light,
simple, concise and slightly roguish style. However, these media did not satisfy a
growing demand for a newspaper with a closer connection to families and living
conditions. El To tried to meet that demand with its sexual education brochures but
failed to get rid of its lurid tabloid reputation, with explicit contents that made it
difficult to take home, as one reader put it. Instead, these segments primarily
bought Ojo for its collectibles, although they viewed it as too long, too serious and
too expensive (S/1 above the others). El Popular, in turn, enjoyed strong appeal on

TromeNews for the Base of the Pyramid

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account of its colorful and contrasting presentation, but it had only managed to penetrate older segments that agreed with its open opposition to the former government.
A significant fact was that a large share of low-income segments decided what newspaper to buy at the point-of-sale. As revealed by focus groups, people seemed to have
two or three options in mind and finally preferred one over the others as a result of
issue specifics, such as a headline, the picture of the day, promotions or collectibles.
We choose among the papers we can buy with 50 cents, explained a reader.
Promotions seemed instrumental to boosting newspaper sales and to their positioning as sensitive to their readers needs. Yet, the most popular newspapers in this segment, Aj and El Chino, offered fewer promotions than other papers, like El To,
with fewer readers. A sound promotion had to amount to an excellent investment,
an opportunity to acquire essential household, children or school-related goods.
Nonetheless, the most distinctive finding revealed that all focus groupsregardless
of their gender, age, or SESagreed that 50-cent newspapers were unsuitable for
home reading. Among other reasons, their explicit pictures of semi-naked women in
sensual poses threatened childrens morality and offended mothers and wives sensitivity. Despite this fact, some male focus groups claimed to read the paper at home,
after cautiously removing any pornographic sections.
In turn, male interviewees of all ages and income segments revealed that they read
S/0.50 newspapers at newsstands and places allowing for a quick browse of headlines, such as workplacesespecially, at lunch breakor on public transportation
to and from work. For most male interviewees, reading the newspaper at work provided a little distraction before returning to their jobs; it also afforded them the quiet
required to focus on the newssomething they felt they could not do at home, with
their children around, particularly when the paper included pictures of nearly naked
women.
Some female interviewees claimed that they often read two and even three newspapers a day, as several family members purchased different newspapers in their households. One noted, My husband is a driver, and he buys Aj and brings it home. My
fifteen-year-old son brings home El Chino or whatever paper featuring Azucena, his
favorite model. So, I get to read two newspapers at home almost every day.

Exhibit 6 presents other conclusions drawn from this market research study. Based
on these conclusions and considering its own experience and track record, the company designed a new popular newspaper with superior contents and appealing promotions
to reach low-income households. It would focus on these segments interestsentertainment as well as quick and concise information. Exhibit 7 shows several pictures that
illustrate these segments life and customs.
Once it had designed the new paper, the company retained Apoyo, Opinin y
Mercados services for two additional studies. Intended to test the papers design, the
first study consisted of eight focus groups with 25- to 50-year-old men and women
from Limas C and D socio-economic segments, who bought Aj, El Chino, El To, or
El Popular newspapers. These groups met during the last week in November and the
first week of December. Most interviewees liked the new newspaper, but some adjustments were necessary as it had met more enthusiastic approval from older respondents,
while younger focus group participants argued that it seemed a bit dull, lacking a little
spark and color. This perception grew stronger as the new paper was compared to
more serious popular newspapers, like Correo, and led to a new positioningmidway
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between serious papers and tabloids, trying to avoid a more vulgar style, but closing in
on the most entertaining newspapers.
After adjusting the new design, a second study in May 2001 tested newspaper acceptance, launch campaign impact and the promotion planned for frequent readers. This
study encompassed nine focus groups, made up of 25- to 50-year-old men and women
from metropolitan Limas C and D SES, who bought Aj, El Chino, El To, or El Popular
newspapers. A participant stated, It is a good paper; it doesnt have too much slang or
dirty language. For me, it is unusual to find so many different topics on one page. Articles
are straight to the point. This paper is going to succeed. It is just as cheap as a tabloid,
but it gives you more value. People have already grown tired of lying, pornographic newspapers.
In June 2001, the company launched Trome to cater to C and D SES, in an effort
to expand media coverage to reach new population sectors. One of its new readers
pointed out, I think its name is very suitable for this newspaper. Trome means ace,
champion, someone whos the best at what he does. Telling someone that he is a trome
is a compliment; it is like saying hes the coolest. And the same goes for this paperit
is the best paper among the 50-cent newspapers.
To serve this new audience, the company built a new editorial infrastructure with its
own writing team. This editorial structure was very small, with little impact on company overhead. As a result, this new product had a positive issue contribution margin. El
Comercio streamlined the new papers printing, distribution and marketing processes.
Figure 2 shows the resulting scheme. A former Ojo newspaper editor, Ral Hernndez,
was hired to manage Trome. A middle-aged, middle-class, well-educated man with vast
experience in popular tabloids, Hernndez seemed to fully support Tromes goal to
become an entertaining, popular newspaper that kept
the population informed. He was to focus on newspa- Figure 2 Organizational Structure
per contents, seeking to use a clear, straightforward style
based on everyday languageinformal, yet not vulgarand reader-friendly writing. Hernndez actually
matched the readership profile associated with Ojo, a
EDITORIAL
EDITORIAL
newspaper widely patronized by middle and lowincome segments that struck a balance between serious
PRINTING
journalism and popular appeal. Still, he was a formal
man, but he often used an old-fashioned jargontypiDISTRIBUTION
cal of Limas middle-class neighborhoods in the past
that did not match Tromes intended readership. For
instance, he referred to house maids as Natachas, a term
MARKETING
that was drawn from a very popular soap opera in the
1970s.
In addition to newspaper content and layout, front-page design was extremely
important, as many paper purchases derived from its impact. For illustrative purposes,
see a sample of an Aj newspaper issue in Exhibit 8 and a Trome issue in Exhibit 9. An
editorial followed the front page, and, next, came the articles on current events, politics
and police-related news. A sports section, followed by information for homemakers,
completed a typical Trome issue.
The front page always featured a promotioninitially involving a cutlery setin
addition to headlines on outstanding sports, police, politics and entertainment news
written in colloquial language. The newspapers second page included editorials and

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useful information. The following sections focused on current political and police news
highly valued sections for targeted readers. Colorful pictures coupled with entertaining, imaginative articles reported news truthfully, avoiding lurid and ghoulish elaborations. This approach served as a means to both educate as well as preserve readers and
their families. While front-page headlines used colloquial language to lure readers, news
contents featured a more formal, objective style. The sports section included articles on
Peruvian athletes succeeding abroad and international soccer stars. Finally, the papers
last pages focused on show business news, cooking tips and recipes, health-related articles, entertainment, and useful information for homemakers in general.
Tromes back page included a section called las malcriadas (spoiled girls), with pictures of women taken from magazines published by other companies. This section was
the object of extensive debate before the newspapers launch, as Trome was to be, first
and foremost, a family paper. These pictures of models actually responded to focus
group findings, and chosen photographs held an aesthetic appeal without bordering on
pornography. The idea was to please some men, avoiding any offense to women and
children.
The company planned a special promotion to support Tromes launch, in an effort
to retain readers and, at the same time, to gain access to households. Every day, the
newspapers front-page contained a numbered coupon. Buyers could trade in five
coupons and pay S/2 to get top-quality cutlery sets at 15 points of sale scattered across
Lima. The complete silverware set included soup and teaspoons, dinner and dessert
forks, as well as dinner and butter knives. Out of the 1.92 million utensils purchased,
Trome still had 660,000 left. Management needed to determine whether the remaining
silverware was to be used to extend this promotion, which had cost S/904,000. See
Exhibit 10 for a summary of promotion results.
Tromes first-year editorial overhead amounted to S/1.13 million, while its marketing (excluding promotion costs) and administrative expenses stood at an estimated
S/565,000 and S/678,000, respectively. The company expected physical distribution to
be 3 percent of sales, while calculations pegged variable manufacturing costs (paper and
ink) at S/ 0.164 per copy. Perus overall sales tax accounted for 19 percent of retail prices.
While advertising sales had been expected to total S/1.5 million, their current estimates
did not exceed S/916,000.

DISTRIBUTION STRATEGY
The choice of a distribution strategy caused some debate. Alberto Cendra Astiz, new
business manager, argued for the creation of a new channel, featuring a specialized sales
force for lower socio-economic segments, while Antonio Cabrera, Circulation Manager,
believed Trome should be sold by the same salesmen who sold all other papers, ranging
from El Comercio, with its higher-income target, to Men, intended for lower population
segments. Indeed, newspaper salesmen naturally segmented their offerings based on
location rather than demographics. Thus, salesmen servicing areas predominantly populated by top A and B socio-economic segments mostly carried high-end newspapers,
including some papers for low-income sectors, and vice versa. Cabrera argued that using
a new channel or some selected salesmen could cause rifts with the street salesmen
union. As a result, management decided to use the same channel that distributed El
Comercio.
Print media companies had an arrangement with the local Newspaper Salesmen
Federation for fee payments: 25 percent on Mondays through Saturdays, and 30 percent
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on Sundays. However, a few years back, an agreement had been forged to have new newspapers pay 30 percent and 35 percent, respectively. Accordingly, the Federation expected
EEEC to pay a 30 percent and 35 percent fee for Trome distribution and demanded a
written agreement to that effect. In AprilMay, the company rejected both demands and
offered to pay the standard fee applied to El Comercio and Correo distributionthat is,
25 percent and 30 percent. It also refused to sign an agreement on the grounds that
Federation leaders used those agreements to obtain other benefits and as the basis for
future claims.
Antonio Cabrera, the forty-year-old Circulation Manager, who had vast experience
in consumer distribution but had been in the company for a short time, could not persuade either EEECs General Manager or its New Business Manager to agree to
Federation demands. The latter stated that the Board was already aware of this decision,
which made it unchangeable. Federation leaders were clearly unhappy with this turn of
events, and it became clear that retaliatory measures could hamper Tromes launch on
Tuesday, June 20, 2001. The newspapers Circulation Department formulated a contingency plan with free-lance salesmen hired to sell Trome.
On its launch date, only 50 percent of Tromes circulation was distributed among
regular and free-lance salesmen. As days went by, regular newspaper salesmen increasingly wanted to sell Trome because they were losing fees. They knew the new paper
featured a widespread advertising campaign and a silverware promotion that had awakened peoples interest. However, Impresora Peruana and EPENSA threatened to cancel
their 30 percent and 35 percent fee agreement for new newspapers if the Federation
gave in to EEEC, further strengthening the unions position. This latest development
held great significance for Tromes success, as its launch advertising campaign continued
and potential readers could not find the new newspaper at points of sale.

DECISION-MAKING TIME
At a meeting held at company headquarters, EEECs Board discussed several options to
salvage Trome. Sales were clearly showing that something was amiss: of the 60,000
papers printed every day, only 36,000 were sold.
Csar Pardo, analytic and cost conscious and a fan of chess and historic fiction, wondered out loud, Perhaps we made a mistake when we set our goals, and we need to
revise them. The question is, which ones?
For Bernardo Roca, a possible solution lay in reformulating the papers content style
based on readers preferences. He made his point, In my opinion, the paper we have
printed so far is too stuffy for this segment. It doesnt have nearly enough content on
entertainment and local news to appeal to these readers.
Ral Hernndez argued, If we look at our competition and what readers are actually reading, its quite clear that we need to focus more on sex and violence, as they do,
because that is what our readers want.
In turn, Pedro Jose de Zavala wondered if it was really possible to maintain the
papers originally intended positioning, or whether it was time to give up on this idea
and withdraw the paper from the market. But, if we pursue that approach, we are
going to lose our advertisers, because they will never advertise in a paper that is all about
sex and violence! It is true, though, that this idea doesnt exactly thrill El Comercios
advertisers. Perhaps we should look for a different type of advertisersmaller companies that relate more to this market. Yet, how do we sell that kind of advertisement?

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Nonetheless, Alberto Cendra believed the paper should be re-launched, entering


into an agreement with the Newspaper Sales Force Federation and changing promotions. Our cutlery promotion is not turning out as expected. Instead of building readers loyalty, we are stocking cutlery in our warehouse. We need to find something that
our readers appreciatean opportunity to meet their needs. We have to reformulate
this strategy to reach out to our readers.
Bernardo Roca was getting upset: We cant go on thinking about promotions! We
have no money for them, and they will not provide a long-term solution if we dont
adjust Tromes contents.
The meeting seemed headed for a dead end. Csar Pardo motioned to put an end
to it.
Gentlemen, I know we are worried about this issue; we need to take steps immediately.
I suggest we take the rest of the day to think about our next moves, bearing in mind your
individual input and the conclusions drawn from the studies conducted one and a half
months after launching. Well meet again tomorrow morning, right here, to make our
decisions and plan our next steps.

See Exhibit 11 for the most salient findings of the Market Research Units quantitative
study and Exhibit 12 for the insights revealed by a qualitative study commissioned to
IMASEN.
Exhibit 1

EEEC Organization Chart


Board
Auditing

General Manager
Csar Pardoo Figueroa Turner

Publishing Director
Bernardo Roca Rey Mir Quesada

New Businesses
Alberto Cendra Astiz
Marketing
Pedro Jose de Zavaia

El Comercio Director

Trome Director
Raul Hernndez

ElComercioPeru.com

N TV Channel

El Comercio Editor

Trome Editor

Distribution
Antonio Cabrera
Adm. & Finance
Operations

Systems

Human Resources
Source: Company documents

10

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Exhibit 2

Demographic Data on Peru and Limas Socio-Economic Composition

1. MAP OF PERU
General Information
Total area: 1,285,216 km2 (496,225 sq. miles)
Limas area: 35,892 km (13,858 sq. miles)i.e., 3 percent of Perus overall area.
Total population: 26.1 million
Limas population: 7.2 million
Per-capita weighted average income: US$305.45
Urban population accounted for 72.3 percent, and rural
population accounted for 27.7 percent of the total national
population.

LIMA

TACNA
Source: www.peru.info.com

2. LIMAS POPULATION SOCIO-ECONOMIC COMPOSITION


Estimated Size
SES

Description

Households

People

In 000s

In 000s

64.4

4.1

250.5

3.5

A1

High

15.7

1.0

68.0

0.9

A2

Middle-High

48.7

3.1

182.1

2.6

260.7

16.6

1,118.1

15.6
6.2

B
B1

Typical Middle

100.5

6.4

445.3

B2

Lower-Middle

160.2

10.2

674.5

9.4

502.6

32.0

2,312.1

32.3

207.3

13.2

914.3

12.8

C
C1

Rising Low

C2

Typical Low

295.3

18.8

1,399.7

19.5

Very low

551.3

35.1

2,596.7

36.3

Extreme Poverty

Total

191.6

12.2

879.6

12.3

1,570.7

100.0

7,162.3

100.0

Source: Apoyo, Opinin y Mercado, July 2001.

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Exhibit 2 (contd)
3. TRANSPORTATION MEANS IN EACH SES IN LIMA*
Responses

Total
2000 %

Total
2001 %

SES
A%

B%

C%

D%

E%

FOR PERSONAL/FAMILY USE

Bicycle for sports/leisure

25

19

55

28

22

12

Car

13

16

96

47

11

Truck

29

Motorcycle

FOR WORK

Car

14

Tricycle

Bicycle

Light truck

Heavy truck

58

62

34

58

77

87

48

143

259

284

16.6%

32%

35.1%

NONE

Sample size

880

833

Weighted distribution

100%

100%

4.1%

99
12.2%

4. APPLIANCE OWNERSHIP IN EACH SES IN LIMA*


Total
2000 %

Total
2001 %

A%

B%

C%

D%

E%

Stove

99

99

100

99

99

99

97

Gas stove

77

77

71

90

92

67

47

Kerosene stove

41

41

10

34

58

64

Responses

Electric stove
Television

12

SES

56

17

96

95

100

100

98

94

83

Cable TV with remote control

55

59

100

94

73

40

18

Black & white TV

48

43

21

27

31

56

67

Color TV withotu remote control

24

21

25

31

25

17

Cable TV

23

23

96

59

22

Radio

90

89

98

92

92

85

81
43

Radio with cassette player

63

53

77

60

52

51

Stereo system with CD player

27

31

98

71

31

15

Radio without cassette player

26

27

51

36

22

22

32

Stereo system without CD player

24

19

52

25

24

13

Walkman

19

14

67

32

14

Electric iron

84

81

98

97

90

76

46

Blender

70

70

100

97

83

55

32

Refrigerator

60

61

10

95

82

40

Land line telephone

46

44

98

85

50

24

Calculator

46

40

90

66

47

26

12

Camera

38

35

90

69

45

14

Fan

35

33

74

62

42

16

Sewing Machine

31

29

45

53

34

19

VHS recorder

28

28

91

64

31

10

Electric mixer

22

24

93

63

24

Typewriter

30

23

44

42

31

Mobile telephone

22

22

88

45

23

Prepaid (card-operated) mobile phone

16

16

51

33

17

Case Research Journal Volume 28 Issue 3 and 4 Summer/Fall 2008

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Exhibit 2 (contd)
4. APPLIANCE OWNERSHIP IN EACH SES IN LIMA* (CONTD)
Total
2001 %

A%

B%

C%

D%

60

16

Washing machine

20

20

98

64

15

Electrical floor cleaner

20

19

92

61

13

Electric rice pot

20

18

84

47

17

Hot water boiler

15

17

100

51

13

Electrical hot water boiler

14

15

87

47

11

Responses
Subscription-based mobile telephone

Gas hot water boiler

Total
2000 %

SES
E%

20

Vacuum cleaner

16

17

100

58

Musical instrument

17

15

50

34

13

Microwave oven

15

15

93

47

Computer (PC)

13

14

88

44

Toaster

12

12

81

39

Food processor

10

10

43

25

4
0

Electric shower
Video games/Nintendo/Play Station
Dryer

17

36

11

49

15

10

69

25

Heater

52

20

Electric heater

47

16

Gas or kerosene heater

11

Internet connection

71

19

Video camera

46

Discman

32

10

Cassette player without radio

Knitting machine

Sample size

880

833

48

143

259

284

99

Weighted distribution

100

100

4.1

16.6

32

35.1

12.2

Source: Apoyo, Opinin y Mercado.


Method: Quantitative.
Technique: Personal door-to-door and telephone interviews.
Sample: 804 cases and 29 additional interviews to confirm sample validity.
Date: June 22July 13, 2001.

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Exhibit 3

Brand Shares of Overall Readership, Copy Sales and Advertising


Investments

1. CATEGORY AND BRAND SHARES OF OVERALL READERSHIP AND PRICES


1998

1999

2000

2001

Traitional Serious Newspapers


El Comercio
OJO
La Republica

44%
28%
9%
7%

46%
28%
11%
7%

42%
25%
9%
8%

33%
19%
8%
6%

Inexpensive, Serious Newspapers


Correo

N/A

N/A

4%
4%

9%
9%

19%
16%
N/A
3%

17%
13%
N/A
4%

19%
14%
N/A
5%

22%
12%
5%
5%

15%
7%
4%
4%

15%
7%
4%
3%
1%

14%
6%
4%
3%
1%

11%
5%
4%
2%
2%

9%
5%
4%

10%
5%
5%

10%
5%
5%

10%
5%
5%

1,877.7

1,853.6

1,732.3

1,951.9

Prices
Mondays Sundays
Saturdays
2
3.5
1.5
2
1.5
2
0.5

0.5

0.5

0.5

0.5

0.5

0.5
0.5
0.5
0.5

0.5
0.5
0.5
0.5

0.5
0.5

0.5
0.5

Popular Newspapers
ENTERTAINMENT

AJA
Trome
El Popular
TABLOIDS

El Chino
El Tio
Extra
El Men
Sports Newspapers
El Bocon
Libero
Averaged Annual Readership
(in millions of people)

Source: CPI, Newspaper Readership Study, Lima 19982001


EEECs circulation area

2. BRAND SHARES OF OVERALL COPY SALES


1999

2000

2001

Traitional, Serious Newspapers


El Comercio
OJO
La Republica

13.31%
8.87%
3.89%

12.96%
8.38%
4.66%

11.30%
5.90%
3.40%

Serious, Inexpensive Newspapers


Correo

N/A

N/A

14.40%

14.60%
N/A
6.08%

12.63%
N/A
8.80%

14.10%
5.80%
5.70%

El Chino
El Tio
Extra
El Men

9.35%
4.80%
4.91%
N/A

7.31%
7.43%
4.70%
3.06%

4.70%

Sports Newspapers
El Bocon
Libero

5.84%
7.20%

5.49%
5.45%

5.20%
5.70%

Popular Newspapers
ENTERTAINMENT

AJA
Trome
El Popular
TABLOIDS

2.00%
4.20%

Source: CCR, Auditing Study of Newspaper Sales at Points of Sale, Lima 19992000
Apoyo, Opinion & Mercado, Estudio de Auditoria de Venta de Diarios en Puntos de Venta, Lima 2001.
Note: In 2001, an average of 4,590,432 copies were sold every week.

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Exhibit 3 (contd)
3. BRAND SHARE OF ADVERTISING INVESTMENT IN NEWSPAPERS
1999
70.6%
59.2%
4.8%
6.6%

2000
71.1%
58.9%
5.2%
7.1%

0%
N/A

0%
N/A

1.0%
1.0%

4.6%
3.3%
N/A
1.3%

4.7%
3.6%
N/A
1.1%

3.4%
2.6%
1.7%
0.8%

El Chino
El Tio
Extra
El Men

1.8%
0.6%
0.0%
1.2%
N/A

2.5%
0.7%
0.2%
1.6%
0.0%

1.9%
0.5%
0.1%
1.3%
0.0%

Sports Newspapers
El Bocon
Libero

3.1%
2.7%
0.4%

4.2%
3.5%
0.7%

3.4%
1.9%
1.5%

Traitional, Serious Newspapers


El Comercio
OJO
La Republica
Serious, Inexpensive Newspapers
Correo

2001
73.7%
61.7%
4.5%
7.5%

Popular Newspapers
ENTERTAINMENT

AJA
Trome
El Popular
TABLOIDS

Source: Media Check, Lima


Note: In 2001, overall media investments totaled US$192 million, with 32 percent devoted to newspapers.

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67% of these readers belong to A and B


this group includes the largest share
of A-SES people (27%); 65% are
men; 66% goes to or went to
college; 56% work; Large share
business executives and owners
more than in other segments; 40%
live in residential areas in Lima

El Comercio, though not as


frequently as Informed Cosmopolitans

Frequent readers of El Comercio;


they also read Gestin

Aspirational Utilitarian

El Comercio, followed by Ojo

21% of overall readership; they read


the paper five times a week;
interested in business information,
economic and business news,
economic and job ads; the ideal
newspaper should be entertaining,
dynamic, hip, and easy to read

They are insecure and prefer to


follow others; rather unfriendly, loners;
they prefer to stay at home; impulsive
buyers, but price-sensitive; interested
in fashion; they like to be distinctive

53% belong to the C SES;


Equal shares of men and women;
They reside in the suburbs,
especially north of Lima

Source: Apoyo, Opinion & Mercado1998.

Sample size: 1,100 interviews.

Sample: Men and women, aged 18 or more, in socio-economic strata A, B and C, who read a newspaper at least once a week.

NEWSPAPER
PREFERENCES

NEWSPAPER
READING
HABITS

14% of overall newspaper readership;


they read the paper four times a week;
interested in culture, educational and
tourism news, as well as information
on other provinces; they value serious,
reliable information

16% of overall newspaper readership;


they read the paper five times a week;
a large share of readers have their
paper delivered at home by canillas;
greater subscription penetration;
interested in economic and business
news; they value unbiased reporting,
variety, and entertainment

Conservative and male chauvinist,


but reasonable; self-confident and
demanding with their purchases;
they are not impulsive buyers; not
interested in fashion; they like
outings and cultural events; they
are concerned about their
community

Traditional, Accountable
Nearly half belong to the B SES (47%)
while 42% belong to the C SES;
57% are women; 68% have a
higher education degree; 60% do not
workthey are housewives or
students; 33% are middle
management employees

Informed Cosmopolitan

Reader Segmentation by Expected Benefits Preferences

Demanding; friendly and selfconfident; they like to make


decisions; they want to be informed;
PSYCHOGRAPHIC innovating in their product choices;
PEOPLE
low price sensitivity; this is the
segment that spends the most on
entertainment away from home;
they enjoy the theater, books, as
well as classical music and rock

SOCIAL AND
DEMOGRAPHIC
FEATURES

Exhibit 4

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Indifferent

They prefer popular newspapers like


Aja, El Chino, or El Popular, as well as
Ojo and sports papers like El Bocon

A third (33%) of overall newspaper


readership; they read the paper
four times a week; interested in
sports, job and economic ads;
they value amenities, colors and
raffles

Lacking in character and selfconfidence; they like to conform to


and follow others; very sensitive to
price; not interested in fashion and
brands; they practice sportssoccer;
indifferent to current affairs

62% belong to the C SES; this group


holds the largest share of low-income
people; equal shares of men and
women; significant share of young
people (31%); 82% have no higher
education

Entertained

They prefer popular newspapers like


Aja, El Chino, or El Popular, as well as
Ojo

16% of overall newspaper readership;


they read papers four times a week;
interested in entertainment, amenities,
and female topics; the ideal newspaper
should be entertaining, dynamic, hip and
easy to read

Insecure but demanding; loyal to brands;


interested in fashion; frequent fast-food
restaurant patrons; not interested in
culture and current affairs

56% belong to the C SES;


significant shares of women and
young people; poor education

Exhibit 5

Macro-Economic Indicators

1. OVERALL AND SES MONTHLY INCOME (IN US$)*

2. HOUSEHOLD INCOME IN METROPOLITAN LIMA AREA

3. LITERACY AND READERSHIP RATES IN METROPOLITAN LIMA (IN MILLIONS OF PEOPLE)*

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Exhibit 5 (contd)
4. HOUSEHOLD MONTHLY EXPENSES*

5. AVERAGE HOUSEHOLD EXPENSES (IN US$, EXCHANGE RATE: US$ 1 = S/3.50)

Responses
Food
Education

Socio-Economic Segment
B
C
D
US$
US$
US$

Total
2000
US$

Total
2001
US$

167

155

603

223

138

108

68

43

73

522

193

67

23

14

A
US$

E
US$

Transportation

40

46

172

75

41

28

23

Telephone

19

38

120

43

25

21

15

Electricity

18

20

83

32

19

11

10

44

16

880

833

48

143

259

284

99

100%

100%

4.1%

15.5%

32%

35%

12.3%

Water
Sample Size
Weighted distribution

Source: Apoyo, Opinin & Mercado, Socio-Economic Segmentation Study, July 2001.

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Exhibit 6

Major Conclusions Drawn from Apoyo, Opinin y Mercados Market


Research
SUGGESTIONS

Number of pages

24 pages accepted.
For some, additional pages should be separated from the newspapers
main body and should feature useful home or education information.

Front page

Direct, easy-to-understand language, no vulgar slang used.


Lively colors.
Adequate layout (no clutter).
Headlines on current issues driving purchase decisions at POS.

Pictures of girls

Latin models in bikinis, thongs or veilsmore sophisticated than current


offerings.

Sports information

Soccer primarilyonly older individuals mentioned horseracing as more


interesting.
Interest in learning about Peruvian soccer stars playing abroad.

Police news
information

Sample individuals liked this topic, with color photographsavoiding gory


images.
Credible, objective news reported in an entertaining fashion.

Useful services

Food prices;
Utility service interruption announcements;
Courses at universities or institutes;
Missing persons.

Amenities

Highly appreciated.
Crossword puzzle.
Other games.

Sunday attractions

Employment classified ads, cooking recipes, school news, traditional medicine articles.

Promotions

Credibility risk, raffles viewed as unreliable.


Coupons, vouchers to exchange for something practical viewed as most
appealing.

Method: Qualitative.
Technique: Focus Groups.
Sample: Men and women, aged 25 through 55 years, in socio-economic segments C and D, who
read and buy Aj, El Popular, El Chino, and El To.
Focus Group Dates: Second and third week in November, 2000
Source: Apoyo, Opinin y Mercado, Lima, November 2000.

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Exhibit 7

Limas Life and Customs


Outside wall of Limas Engineering School
Displays of this kind are very common on Limas
walls. Many social and cultural eventsprimarily
concerts and popular festivalsare informally
advertised in chaotic displays with bright colors
typical in Pre-Columbian artto catch the eye of
passersby. This has become the standard aesthetics
for lower-income segment communications, differing
radically from the style appealing to higher SES.

Mercado CeresA typical scene in Lima: lots of


people, lots of colors, and a kind of fear of void that
characterizes most popular settings. This picture
provides another example of communications
addressing lower income segments, while it also
shows Peruvians ethnic characteristics.

Source: Lima Capital, Estilos de la Gran Urbe, EEEC, 2007.


Note: To view these photographs in their original colors and to gain a better understanding of Perus culture and typical colors, log into http://www.iae.edu.ar/SiteCollectionDocuments/Investigacion/Trome-AnexosFotos-Eng.pdf

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Exhibit 7 (contd)
Slums and squattersPerus extreme poverty
reflects on its capital city, where a large share
of the population lives in alarmingly precarious
conditions. Their lives are plagued by poverty,
no utilities, no sanitation. The color contrast
between houses in these slums and the signs
shown in the pictures above is very eloquent.

CanillaNewspaper street salesmen work nonstop from five in the morning through six in the
afternoon, when they have completed their
collections. In this case, El Correo holds a preeminent position in this canillas display.

Source: Lima Capital, Estilos de la Gran Urbe, EEEC, 2007.

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Exhibit 8

Aj Issue Layout and Contents (June 28, 2001)

1. FRONT- PAGE

2. SHOW BUSINESS

He spent 700k bucks a month!

Lusty tabloids gave Damushka a boage

3. CURRENT EVENTS

4. PROMOTION

Japan wont let go of Fuji that easy

Aj gives 2,500 dollars to deadbeaat fan

Source: Company documents.

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Case Research Journal Volume 28 Issue 3 and 4 Summer/Fall 2008

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Exhibit 9

Trome Issue Layout and Contents (June 28, 2001Launch Date)

1. FRONT PAGE

2. SHOW BUSINESS

Today, A Free Spoon!! Ciggie burns matress, and smoke cools chink

Magaly sticks up for Missy Gisela

3. CURRENT EVENTS

4. MALCRIADA

Construction Materials Bank traps thousands in humongous debts

Emsout to get their spoons

Source: Company documents.

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Exhibit 10

Trome Evolution

1. CUTLERY PROMOTION IN JUNE 20, 2001 ISSUE

Dig in and get a 24-piece silverware set for free

Straight from Europe to your tablefor free, no raffles

2. PROMOTION RESULTS
Silverware

Purchased

Traded in

Spoon

274,286

271,246

3,040

Butter knife

274,286

200,742

73,544

Knife

274,286

201,246

73,040

Fork

274,286

104,262

170,024

Tea spoon

274,286

104,061

170,225

Dessert fork
Total

Balance

274,286

104,365

169,921

1,920,002

1,260,208

659,792

Source: Company documents

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Exhibit 11

Quantitative Study Findings

1. TROME BUYER PROFILE*


TOTAL
Buys Trome at home

33%

Gender

SES

Age

Male

Female

D/E

1525

2637

3850

51+

52%

48%

45%

55%

30%

26%

27%

17%

Sample: All 1788 interviewees.


2. PURCHASE FREQUENCY*
Gender
Segment
Low
Moderate
High

Frequency

Once

10.00

26 times

40.40

SES

Age

Male
%

Female
%

C
%

D/E
%

1525
%

2637
%

3850
%

51+
%

57

43

43

57

28

29

27

16

50

50

47

53

36

25

23

16

720 times

27.00

2030 times

9.10

more than
31 times

13.50

44

56

45

55

21

20

32

27

100.00

52

48

45

55

30

26

27

17

Total

Sample: All 582 interviewees who bought Trome.


3. REASONS TO BUY TROME FOR EACH BUYER SEGMENT*
News/Contents

Cutlery/Coupons Curiosity/Novelty/
New Paper

Information
Quality

Low Price

Low

34%

22%

31%

11%

9%

Moderate

34%

32%

13%

20%

12%

High

17%

62%

6%

21%

7%

Total

32%

30%

21%

16%

10%

Sample: All 582 interviewees who bought Trome.


4. TROME PURCHASES VS. OTHER NEWSPAPERS*
TOTAL
He/she stopped buying
another newspaper

49%

Newspaper he/she stopped buying


Aj

El Chino

Ojo

Correo

El Popular

29%

15%

15%

11%

7%

El To El Comercio
7%

6%

Sample: All 582 interviewees who bought Trome.


Methodology: Telephone interviews with structured questionnaire.
Sample: Men and women, aged 15 or more, in Limas socio-economic segments C and D/E.
Date: First fortnight in August 2001
*Source: Market Research Unit.

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Exhibit 11 (contd)
5. REASONS TO BUY TROME FOR EACH SEGMENT*
TOTAL

Gender

SES

Age

Male

Female

D/E

1525

2637

3850

51+

30%

23%

38%

27%

33%

30%

32%

28%

31%

Curiosity/novelty/new paper

21%

25%

16%

28%

15%

21%

21%

23%

18%

Low price

10%

8%

12%

10%

10%

11%

9%

12%

8%

To check out its contents

10%

12%

8%

8%

11%

7%

14%

8%

11%

News

9%

8%

10%

7%

11%

7%

7%

9%

14%

Front-page headline

5%

7%

3%

5%

5%

2%

2%

8%

10%

Superior information/sound reporting

5%

5%

5%

4%

6%

6%

3%

5%

6%

Advertising

4%

6%

3%

5%

4%

5%

6%

5%

2%

Variety

4%

4%

4%

6%

2%

4%

4%

5%

4%

For information

4%

2%

6%

3%

5%

5%

5%

3%

3%

For sports news

3%

6%

1%

3%

3%

6%

5%

1%

1%

For a relative

3%

3%

4%

3%

4%

5%

5%

2%

2%

Serious news reporting

3%

2%

3%

3%

2%

2%

1%

5%

3%

More information than other papers

2%

3%

2%

3%

2%

2%

1%

5%

2%

News on politics

2%

4%

0%

3%

1%

2%

2%

1%

4%

Short articles

2%

3%

0%

3%

1%

1%

2%

2%

4%

Tips

1%

1%

1%

2%

1%

2%

1%

1%

2%

Cutlery/coupons

To look for a job

1%

0%

3%

1%

1%

2%

1%

1%

0%

Entertainment

1%

1%

1%

1%

1%

2%

1%

1%

0%

Sample: All 582 interviewees who bought Trome.


6. REPEATED PURCHASE INTENTION AMONG TROME BUYERS*
Do you plan to continue buying Trome?

Total

Yes

SES
C

D/E

85%

83%

87%

No

8%

11%

6%

Unknown

7%

6%

7%

Sample: All 582 interviewees who bought Trome.


7. PURCHASE INTENTION AMONG NON-TROME BUYERS*
Do you plan to buy Trome?

Total

Yes

SES
C

D/E

50%

46%

54%

No

38%

42%

35%

Unknown

12%

13%

11%

Sample: All 1,206 interviewees who did not buy Trome.


Methodology: Telephone interviews with structured questionnaire.
Sample: Men and women, aged 15 or more, in Limas socio-economic segments C and D/E.
Date: First fortnight in August 2001.
*Source: Market Research Unit.

26

Case Research Journal Volume 28 Issue 3 and 4 Summer/Fall 2008

This document is authorized for use only in Marketing Estrat?gico DMGC10 by Pedro Jos? De Zavala, Universidad del Pacifico from November 2015 to April 2016.

Exhibit 12

Major Conclusions Drawn from Qualitative Study

Trome was viewed as a newspaper in an intermediate category between formal, traditional newspapers and entertainment, or sensationalistic tabloids. This intermediate positioning resulted from
its objective news reporting, avoiding slang in headlines and gory pictures, and less police-related
information, coupled with an accessible price.
When asked to indicate Tromes differentiating factor, study participants mentioned its variety,
referring to the diversity of topics covered. Information diversity, however, did not drive participants to view it as a family newspaper, as it was perceived as a newspaper for adults.
Participants did not spontaneously characterize Trome as a useful newspaper, which denoted that
either this characteristic was not viewed as especially valuable or it was not clearly associated
with it.
To analyze Tromes offering, study participants were asked to imagine it as a person. In general,
Trome was described as a person who wanted to talk about everything, rather formal and grave,
but friendly. In some cases, it was viewed as a male, while other participants associated it with a
womanspecifically, a homemaker. This association was reinforced by the newspapers initial
promotion.
Tromes language choice was viewed as an attempt to stress its popular nature, but this was not
a trait closely associated with other newspaper characteristics.
According to participants, newspaper sections seemed to lack zest, an additional flavor offered
by other newspapers.
One of the most criticized features was Tromes front page. It was viewed as not attractive
enough to drive impulsive purchases. Participants indicated that it provided too much information
on topics, and, therefore, did not trigger readers curiosity. In addition, its graphic features were
considered unappealing. A newspaper could catch peoples attention through pictures or headlines, and, in most cases, Trome was failing to do so on either front.
In spite of a policy to respect sections, study participants felt that each Tromes section order was
not adequate.
Methodology: Focus Groups.
Sample: Men and women, aged 25 or more, from low-income sectors.
Dates: July 31 through August 13, 2001.
Source: IMASEN SA.

TromeNews for the Base of the Pyramid

27

This document is authorized for use only in Marketing Estrat?gico DMGC10 by Pedro Jos? De Zavala, Universidad del Pacifico from November 2015 to April 2016.

NOTES
1. Socio-Economic Strata (SES) were used as a key variable for information screening.
SES referred to a significant number of people sharing economic and social traits
that distinguished them from other groups. A specific SES was assigned to each
household by adding the scores from five measurements that proved to provide reliable and valid information to characterize household socio-economic features. These
variables included household head education, household head occupation, washing
machine ownership, cleaning help, house faade, and number of bathrooms. Results
classified local populations into five segmentsA, B, C, D, and E.
2. Street newspaper salesmen. The first time a street newspaper salesman in Peru was
heard shouting the name of the paper he was selling was in 1867. This sale method
was so successful that it was quickly adopted by other newspapers, leading to a new
source of employment.
3. S/ stands for soles, Perus currency. In 2001, the exchange rate was US$1 = S/3.50.
4. Typically, tabloids were printed on 380mm x 300mm (15" x 12") sheets. This newspaper format was widely used because it facilitated reading, as compared to broadsheet formats (600mm by 380mm or 23.2" x 15"), preferred by more serious newspapers, like Great Britains Times, or the Berliner format (470mm x 315mm or 18.5"
x 12.4") used by Frances Le Monde. The term tabloid commonly referred to newspapers concentrating on sensational or lurid news, as the first newspapers of this
kind were printed on this smaller format.
5. Perus economic downturn since 1997, characterized by a public deficit nearing 2.5
percent of its GDP, was compounded by a political crisis that followed President
Alberto Fujimoris resignation after his controversial second election. A video footage
was broadcasted showing the administrations Intelligence Service (SIN) head,
Vladimiro Montesinos, bribing several country officials and businessmen to support
the government that was already vested with extraordinary powers.
6. Chicha newspapers were known for their vulgar, lurid sensationalism. Starting in
Lima, this type of press expanded to other provinces in tabloid format. It featured
colloquial language, colorful front pages with large headlines and huge pictures of
barely-clad women.
7. Perus largest and most renowned market research and polling agency, which also
operated in Bolivia and Ecuador. Its areas of expertise included marketing, advertising, customer loyalty, media and public opinion studies. In turn, its marketing area
focused on consumer and buyer research.

28

Case Research Journal Volume 28 Issue 3 and 4 Summer/Fall 2008

This document is authorized for use only in Marketing Estrat?gico DMGC10 by Pedro Jos? De Zavala, Universidad del Pacifico from November 2015 to April 2016.

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