Since a competing lower-priced newspaper, The Bugle, was started five years ago, The Mercury’s circulation has
declined by 10,000 readers. The best way to get more people to read The Mercury is to reduce its price below that of
The Bugle, at least until circulation increases to former levels. The increased circulation of The Mercury will attract
more businesses to buy advertising space in the paper.
Argument concludes that decrease in pricing of newspaper ‘The Mercury’ will lead to more circulation than its competitor newspaper The Bugle. Thus, it will fetch more advertising business. Currently volume have been eaten by newly launched lower priced newspaper ‘The Bugle’. As per the argument, it is required to reduce the pricing of The Mercury at least until circulation increase to former levels.
Argument needs to answer few questions or parameters before concluding the strategy of price reduction for sales increase of the Newspaper Mercury. Questions like, is the price the main factor which is leading to reduced circulation of the newspaper Mercury? Or is it the content of newspaper? Is there general trend in newspaper circulation due to some other factors such as digital media, social media, OTT platform etc.? Is the no. of readers decreasing in the area irrespective of any newspaper?
To answer first question, argument needs to have clear evidence the pricing is the only major factor leading to decrease in circulation. Past trend on circulation if price increased could have been studied to decide upon the price increase. Other factors like economic condition of target readers could have been studied.
Second important parameter affecting the circulation could be the content of Mercury newspaper and its competitor The Bugle. It is a possibility that readers are liking the content of newly launched newspaper. Mercury newspaper can work on its content as per the readers interest rather than focusing on pricing factor. Authenticity of the content could be another factor. There could be chances that readers are liking authentic content rather than twisted content.
Third parameter affecting the circulation could be the general trend change of newspaper readers. With the availability of social media, internet digital channels, many newspapers digital applications, readers may have become reluctant to hard copies of newspaper. Environment awareness could be another factor to save environment by reducing the papers.
After considering all above aspects, it is rationale to conclude that pricing is the main reason for reduced circulation of The Mercury newspaper. Content improvement, more digital push, authenticity of the content can also be important factors in increasing the circulation. Argument should have considered above mentioned aspects before making conclusion.
