Friday, February 27, 2004
The Economist gets economical -- a sign of the Times?
I bought the last edition (the India special) of the Economist at a news-stand in Cochin, India. I was prepared for a whopper bill (by Indian standards anyway). After all, the last time the Economist did an India special, they increased the price to Rs.200 ($4.40) from the usual news-stand price of Rs.120 ($2.60) (of course, both these prices are much lower than U.S. rates). Instead, I discovered that the price had dropped to Rs.60 ($1.30). In addition, the number of copies on sale was much higher than the two-three I normally used to find in Cochin. What gives?
A little investigation and I discovered that the marketing of the Economist had been taken over by Bennett, Coleman & Company (yes, the Times of India) from India Book House who marketed it earlier. The Times, with it proven marketing savvy, seems determined to make the Economist mainstream fare in India. The annual subscription rates have now dropped to Rs 2,100 per year (meaning $46.60 or $0.90 per issue -- Rs 40 approx). Around a year and a half ago, India accounted for about 11% of its total sales for Asia. Given the current economic growth in India, the Economist has clearly targeted India as a market in which it can grow really quick. I think at Rs 40, they have the price point right and I think the Times's marketing clout will do the rest. Good for India which gets high quality journalism and analysis. Good for the Economist, that could badly use a non-western perspective every now and then.
A little investigation and I discovered that the marketing of the Economist had been taken over by Bennett, Coleman & Company (yes, the Times of India) from India Book House who marketed it earlier. The Times, with it proven marketing savvy, seems determined to make the Economist mainstream fare in India. The annual subscription rates have now dropped to Rs 2,100 per year (meaning $46.60 or $0.90 per issue -- Rs 40 approx). Around a year and a half ago, India accounted for about 11% of its total sales for Asia. Given the current economic growth in India, the Economist has clearly targeted India as a market in which it can grow really quick. I think at Rs 40, they have the price point right and I think the Times's marketing clout will do the rest. Good for India which gets high quality journalism and analysis. Good for the Economist, that could badly use a non-western perspective every now and then.
