READER'S DIGEST GEARED FOR GROWTH
September 2007

The South African edition of Reader's Digest, the magazine which has the largest circulation in the world, is being repositioned to attract the broader South African middle class.

Media 24, which took over the license to publish the magazine from Heritage Publishing in November 2005, is implementing a carefully planned strategy to revitalize the pocket-sized publication and boost circulation in South Africa.

Reader's Digest has undergone significant changes in the past months including the launch of a new cover design, the development of innovative retail marketing initiatives and a focused effort to growing the quality and quantity of local content.

The latest figures from the Audit Bureau of Circulations indicate that Reader's Digest circulation for the period April to June 2007 has increased by 3.4% to 61 927 compared to 59 886 in the period January to March 2007. This promising growth, achieved in a challenging climate in which many magazines suffered losses in circulation, has reaffirmed the publisher's commitment to reposition the magazine.

The redesign of the magazine's cover was the first step and the first new look cover appeared on the June 2007 issue. The new design was informed by quantitative research conducted by Markinor in March 2007. A range of cover looks were tested on a group consisting of current and potential Reader's Digest magazine buyers. The look that has been adopted by the magazine was the test group's overwhelming favourite.

The new cover design features a bold red Reader's Digest logo set against a prominent white top panel. This is a significant departure from the past, and aims to make readers and advertisers take notice.

As part of the repositioning, the publisher is increasing the percentage of local content and is developing a network of South African researchers and writers to ensure a steady supply of quality local journalism.

Reader's Digest has also commissioned regular in-depth surveys conducted by AC Neilsen on a variety of topical social and political issues to ensure a steady flow of exclusive newsworthy content. The South Africa's Most Trusted survey results published in the February 2007 issue generated enormous public interest with exposure on television news programmes, on radio talk shows and in national newspapers.

Staffing at the magazine has also undergone changes in line with the repositioning and the appointment of a new editor is imminent.

The words "South African" have been included in the new masthead to differentiate the magazine from its international editions and to reinforce the fact that the magazine includes an increased level of local content.

Steps have been taken to improve the magazine's distribution mechanism. Reader's Digest continues to rely on its successful model of attracting subscribers through a direct mailing system, but there is now a new emphasis on increasing the magazine's presence in retail outlets. As part of this process the new-look magazine is being promoted through special counter stands in airport retail concession stores and in Exclusive Books. Various point of sale promotions have also been run.

To emphasise the core values of the brand which has a high level of latent loyalty, and raise awareness about the changes and repositioning, a ComutaNet consumer campaign targeting the black middle class was conceptualised.

Featuring a range of everyday characters, the campaign aims to communicate the broad appeal of the content as well as the fundamental brand truths that set Reader's Digest apart from other magazines. You can "trust it", "feel it", "believe it" and "read it to get it" with a final call to action to Rediscover Reader's Digest. The six month campaign runs from end May to end October 2007.

The campaign includes advertisements placed inside trains running in the Western Cape, KwaZulu-Natal and Gauteng; branding on the exteriors of buses in Gauteng and KwaZulu-Natal; and backlit billboards.

The magazine has prioritised its online presence at www.readersdigest.co.za with the site featuring Reader's Digest articles from across the globe, which have not been published in the South African edition. The site also offers podcasts of Reader's Digest interviews with celebrities including Lebo Mashile, Halle Berry, Yvonne Chaka Chaka and John Travolta.

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