To deal with the current media environment and its impact on newspapers, publishers should prepare themselves for a hurricane, Force 5, Verdens Gang (VG) CEO Torry Pederson said at the annual Readership Conference of the World Association of Newspapers in Amsterdam Friday. Pederson also talked about how to manage the company's profits in such a tough times.

VG's print circulation has dropped over 20 percent since 2002. However, profit increased from 270 million Norwegian krone (€31 million) to 365 million krone (€41 million).

"Our strategy has been twofold ­continuous product diversification and improving production efficiency considerably," he said.

VG has expanded its Web presence, not only with the main online newspaper but also by establishing a social network site. A supplement on newspapers has been added on weekends, as well as a magazine for personal finance. "We've diversified our offerings over the years and that's significant," Mr. Pederson added.

Pricing is also crucial during hard times. According to Mr. Pederson, "I think there is a lot to do in strategic pricing in newspapers. There is a wonderful opportunity to take the right price from the market."

In order to improve marketing effectiveness, VG spent €10 million annually on examining its market, and uses a model that considers all possible factors that contribute to sales.

Publisher should pay more attention to distribution too - ensuring good product placement at sales outlets is one important focus, as is establishing new outlets, Pederson said. "We have to take into account that a reader of a newspaper today is taking an opportunity to relax or to be educated, so you have to be there at the time they do it. You should have the opportunity to buy a newspaper in a coffee shop, for example."

A wide variety of advertising opportunities is out there for both the big spenders and the small ones. "To work a lot with space management is extremely important and will become so even more in the years to come," he told the audience.