Economic Analysis of Life Style

Economic Analysis of Life Style

Media Economics

1. Introduction

Life Style is a newspaper served as a guidebook of urban life in Beijing. It is a subsidiary of the newspaper office of China Business. It was launched on January 8, 1993. For fourteen years, it insists on reporting sharp and stylish unique perspectives, and a positive, and it advocates healthy and high quality Life Style. As the most successful life service newspaper in Beijing by far, it released two issues separately on Monday and Thursday, focusing on "a full range of consuming reports, with an ultra-sensitive social perspective, advocating new Life Style and high-class of design and productions" and concerning about people's lives. On August 2006, Life Style won "2006 Top Ten National Urban Weekly Newspapers" [1] issued by the China National Press and Publication Administration due to its outstanding performance in the Chinese newspaper market. Up to now, Life Style stands its unique position in the Beijing newspapers market, and it has won the praise of readers.

2. Market Segmentation

As a newspaper, Life Style works the same as other newspapers on selling: Selling the content to readers and selling the reader group to the advertisers. In a word, readers and advertisers are both their consumers. Thus, it is better for Life Style to segment their readers and advertisers.

2.1 Target Market

Like other newspapers, Life Style has two types of buyers.

One is the reader, it mainly concentrates on fashionable Beijing residents around 18-35 years old, the ratio of male to female is about 4:6, they all have a good education and have increasingly sophisticated mainstream consciousness, most of they are white-collar, who have strong spending power, their per capita income are much higher than the average per capita income of Beijing residents.

For Monday issue, it targeted on strong-consumption-ability group, mostly are businessmen and urban elite, who have substantial disposal income.

As for Thursday issue, it targeted on active-consumption-ability group, in other words the white-collar group.

The other is the third-party payer, the advertising agency, to make it work.

2.2 Segmentation of Advertisers

Firstly, in this section, the article will indicate the main target client segments of Life Style. Secondly, it will separately introduce the reason and the metric of advertisers' segmentation. Finally, it would summarize the cooperative channels of Life Style and its advertisers.

2.2.1 Main