Sun's price cut an attempt to 'slow the decline curve'
By Leah McBride Mensching, Wednesday 5 September 2007 at 22:10 :: Competition :: #520 :: rss
The Sun's move to cut its cover price to 20 pence in London and begin using street vendors to stay ahead of circulation rivals the Daily Mail and freesheet Metro could force rival red-tops the Daily Mirror and Daily Star to follow suit, should the price cut prove successful.
The price slash, from 35 pence to 20 pence that began Monday in the London region, is seen as a defensive strategy to keep circulation above three million, and is being backed by a television advertising campaign.
The News International daily is aiming to increase circulation, just as the Mail on Sunday did with its Prince CD give-away in July, according to a media buying agency director, MediaGuardian reported. The price cut is also intended to stay ahead of the Daily Mail in terms of brand leadership with advertisers and is an answer to Metro's recent announcement that it will increase circulation by about 250,000 copies.
The Sun, like the rest of the newspaper industry, is under pressure to lower ad rates as circulation falls; however, the daily red-top is also under pressure to not fall below the three million daily circulation barrier, and the paper is currently at about 3.1 million, according to a MediaGuardian report. If circulation falls below three million, the Sun could very well lose brand leadership over the Daily Mail.
“At the moment, the Sun is 600,000 to 700,000 copies ahead (of the Daily Mail), which gives it brand leadership equity in its market, but if that gap was to fall to 400,000 copies it would lose that edge,” Chris Locke, UK group trading director of media agency Starcom, told MediaGuardian. “The Sun is trying to slow the decline curve ... and if successful, rivals will have to follow suit.”
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