To: Miranda Priestly, Brand Manager
From: Subomi Y. Johnson
Date: April 27, 2009
Re: Analysis and Recommendations for Seventeen Magazine v. Teen Vogue ____________________________________________________________

_________________ In regards to my current assignment, I have conducted detailed analysis of Seventeen Magazine in comparison to Teen Vogue Magazine. In this project I have also included an industry analysis for teenage girl magazines in 2009 and an overview of the marketing mix for both our brand Seventeen as well as Teen Vogue.

In conclusion, I have proposed 3 recommendations to better target our audience, build better brand equity, as well as expanding our distribution channels. These recommendations include narrowing our target market, creating a television show, and building a brand store.

Thank you giving me this opportunity to analyze the industry and marketing mixes of both brands. In addition, I hope that my three recommendations will better the company in the future. If you have any questions please feel free to contact me at sj7613a@american.edu or by telephone at 202-384-9364 Attachment: Industry Analysis, Marketing Mix, and Brand Recommendations

Part 1
Magazine Industry Overview The magazine industry is a very diverse business venture as it is full of multiple segments for its various target audiences. The teen market is full of recognizable names such as the pioneer of teen magazines, Seventeen established in 1944[1], Teen Vogue established in 2003[2], CosmoGirl established in 1999[3]. Each of these magazines caters to the same target audience, girls, ranging from ages 15-25 girls, but segmented to meet the needs of teenage girls in their own niche markets. But as the years have gone by the magazines themselves have seen a change not just in the content of its publications but in other areas. These changes are evident in the latest styles, editors moving from one publication to another, the modifications of the ideals of teenage girls in the 21st century, and the cost and vehicles used to reach their target audiences.
The Economy Since the end of 2007, the economy has played a role in controlling the purse strings of both the magazine publications as well as those who purchase the work. As the economy continues to turn, the incomes of the target market are also declining , which will in turn decrease the amount of magazines and other forms of entertainment that readers will send their disposable incomes on. As with any recession the cost of raw materials, has increased causing the price of printing and some retail prices of these publications to rise. The magazine and periodical industry despite the economic times is expected to grow at a rate 1.2% each year for the next 5 years proving[4] that that this industry is still stable and will not lose detrimental ground as a result of the times. (See figure 2)

Technology Innovation and technology have had great influence on the magazine industry as they can reduce expenses as well as extend the magazines reach. According to Stephanie Clifford of the New York Times: A New York Times analysis of circulation data for the 50 largest and most expensive magazines showed that in the last four years, as overall prices rose 14 percent, subscription prices dropped an average of 9 percent.[5]

As a result, a common trend for magazines and newspapers is expanding their channels by incorporating online components to their publications. In the event that newsstand sales decline, the readership on the internet will keep the publication alive and in contact with its target audiences. The National Directory of Magazines reports that, “There were 19,532 consumer magazines in the United States in 2007 (of which 13,247 magazines had websites)”.[6] This is prevalent in magazines such as Seventeen, Teen Vogue, CosmoGirl as they now incorporate online portions to their print publications, providing its readers with a more interactive and personal experience with the brand. In other cases some magazines have turned to 100% online publications, for example ELLE Girl is now found on ElleGirl.com.[7]
Consumer Trends Likewise, the ongoing trend of increased internet usage has created a curse and a blessing for those in the magazine industry. The internet allows readers to access the magazines when and where they please at little cost. However, the internet is also full of the other competitors. As websites and blogs such as twitter, Facebook etc. are integral to the lives of 12-17 year olds, the services once provided solely by print magazines is virtually free on the web. The internet allows readers to find other forms of entertainment either from actually magazine websites, or news stories from the search engines catering to the preferences of the subscribers.
Part 2: Brand Analysis and Comparison: Seventeen to Teen Vogue
A. Target Market
Seventeen
Seventeen is known as the “All American magazine” as teenagers around the nation can relate to is stories and advice, after all it is written with the mindset of at 17 year old. Reaching over 13 million readers each month as the leading Beauty and Fashion magazine, [8]Seventeen caters towards girls ages 12-19[9] as many girls continue their subscriptions in to their college years. • Median household income of about $60,975 as of 2006[10] • Geared more towards celebrity news, affordable fashion, and beauty and relationship advice for those in their teenage years and young adults

Teen Vogue Conde Nast, a pioneer in the magazine industry with marquee names such as Vanity Fair and Vogue entered the teen magazine race late in the game as it launched its magazine Teen Vogue in late 2003. “Fashion starts here [Teen Vogue]… Style conscious girls everywhere know there’s only one source for relevant fashion and beauty news communicated in a sophisticated tone, with the power of the Vogue brand”.[11]

• “Teen Vogue is written for the style conscious teen in mind with a Vogue point of view. For girls living outside of big cities, the ideas and suggestions in the magazine can be inspirational and we encourage girls to adopt the trends in their own ways.”[12] -Eleanor Banco Teen Vogue Director of Public Relations • Young girls ages 12-19 • Median household income of around $54,290 as of 2006[13] • Through the use of multi-branding Teen Vogue’s transition from the 8x11 glossy pages of the worldwide sister publication to the smaller eye catching teen version was surprisingly easy as it faced stiff competition.

B. Product Position and Strategy Seventeen’s product position and strategy stems from being the first teen magazine in the industry making a niche for itself across newsstands. As the “all American magazine” seventeen uses vehicles and marketing strategies that conquer with its target audience. Unlike Teen Vogue, Seventeen partners with local radio and TV stations such as z100.3 in New York for mall visits including concerts and fashion shows during prom season. This places Seventeen directly with its target audience of teenage girls and within their shopping price point, a place where Teen Vogue would not be found. These mall visits also allow Seventeen to promote itself as many of the prizes are Seventeen products such as t-shirts and make- up bags. Teen Vogue rides the waves of its parent publication Vogue and therefore positions itself with the likes of those readers as a result; Teen Vogue can compete in the teen space and also the women’s fashion magazine space.[14] Within the past few years Seventeen has partnered with the CW’s hit show America’s Next Top Model, providing the winning model with a 7 page spread as well as cover appearance on the magazine.[15] This collaboration increases brand equity as Top Model gives average girls the chance at a lifelong dream and which parallels the ideals of Seventeen, “It’s Fun to be Seventeen". Partnerships like this including the nationwide model searches and contests add to Seventeen’s brand personality, equity and positioning among teenage girls in the United States. Teen Vogue’s position and strategy are to emulate that of Vogue but as Seventeen, staying true to the needs and wants of the average teenage girl is a strategy that worked when this publication first launched in 1944 and should be continued. Although the trends and fads may change the life of a 17year old will see minimal change.
C. Promotion
|Promotion |Seventeen Magazine |Teen Vogue |
|Partner with a store |Verizon, American Eagle, Zumies, Macys | |
|Celebrities endorsement | | |
|Brand Store | |Haute Spot |
|Advertisements | |Coach, Louis Vuitton |
| | |Double the amount of fashion ads compared to |
| | |Seventeen[16]. |
|Websites | | |
|Television shows in Progress | |MTV’s The Hills |

Seventeen • Events- The 2009 Beauty Rush Campus Tour with Maybelline New York allowed Seventeen to connect with its college readers as Seventeen visited sororities across the nation. • Mall contests and prizes • America’s Next Top Model grand prize • Previous Television show with MTV- Miss Seventeen

Teen Vogue • Teen Vogue Haute Spot- small retail chain in select malls • Exposure on the Hills-MTV reality show

The promotion and communication used by both publications work well in both cases and stay true to the magazine’s core ideals and target audiences. In the case of Seventeen branching out into the college age rage is a great way to maintain readership and interest within that demographic.
D. Distribution Seventeen’s as well as Teen Vogue’s distribution channels comprise of the magazine itself as well as the online interactive websites. Seventeen carefully integrates the online portion of the magazine to the print version by providing games and giveaways only found online, quizzes on a plethora of topics, as well as videos on quick workout and beauty tips. The use of the internet in this age of technology is key to sustaining the magazine and keeping a strong tie with the target readers as they are spending more and more time on the internet rather than reading actual print publications. In addition to seventeen.com, selling everyday products is another channel of distribution. Seventeen products such as bedding, shirts, school supplies and clothing can be purchased at retailers such as JC Penny, yet another way for Seventeen to reach is readers and promote the brand at the same time. By providing these types of goods seventeen can go with our readers where ever life takes them either to class or in the form of bedding as one embarks on their college years.
|Magazine |Seventeen |Teen Vogue |
|Distribution: Past 6 Months- Total Audience |2,024,147 |5,954,000 |
|Subscription |1,695,722 |1,017,125 |

[17]

E. Pricing The physical size of Seventeen (8x11) compared to Teen Vogue and the content including the worth of the advertisements featured in each would cause one to believe that Teen Vogue was at a different price point. Surprisingly, the news stand prices of the publications are the same. As of February 2009 the price of both magazines was $2.99. By keeping the prices of the works the same or similar highlights that it is the content inside and the target audiences that keep the magazines competitive. While Seventeen caters to a broader audience, Teen Vogue stays true to is fashion niche. The offerings not the price of the works lead to the competitive nature of the industry.

Part 3: Recommendations
Recommendation #1 My first recommendation to improving the competitive position of Seventeen is to appealing more to the other teenage/ young adult section of our market. Although, Seventeen is written with the thinking cap of a 17 year old, incorporating a section of the magazine or elaborating on the college life section of the magazine would allow us to maintain the subscriptions of those young girls who still have subscriptions sent to their college dorm rooms. I feel that the magazine is moving further away from its name Seventeen. We should focus on the high school girls and the transition and early college years. (See Figure 3) By focusing on the girls ages 17 and up we can bridge the game between our publications and those of Cosmopolitan. In addition, since the title itself explains that a 17 year olds mindset is the basis of the magazine, catering more towards the 17 -24 year old market would better suit the magazine and move closer to the roots that this magazine was based upon. In addition since our competitor Teen Vogue’s audience is similar to ours, yet their medium age is 18[18], moving our segmentation up a few years would put us in a better position to compete with the like of Teen Vogue, yet staying true to our ideas of the “American Magazine”. Because the target market is so large narrowing the gap will give us more of a niche market approach.

[pic]
Figure 3- Hearst.com[19]

On the other hand there are also cons to this recommendation. In an effort to change the target market or segment our market differently we may lose many young readers of our magazine. Although these girls are not necessarily 17, a lot of middle school and high school girls read our publication and use them fundraiser for their own organizations. Some may also feel that by creating more of a niche market for Seventeen, we may lose the appeal of reaching the “All American Teenager”. After all, Teen Vogue stands out among the teen magazines because of its selective niche market. Recommendation #2 Along those same lines as my first recommendation, working with MTV or VHI a teenage/young adult network can increase our exposure though a new type of reality show. This show would focus on the businesses aspect of our magazine as well as giving our readers the opportunity to life out their dreams of working in the magazine industry. This show will be similar America’s Next top Model and the Apprentice as young ladies will be given the opportunity of a life time to work for an internship at Seventeen, but along the way networking and learning the skills of a businesswoman. By incorporating a reality show to the magazine this will give us a competitive edge as the Seventeen brand would become more familiar with those that do and do not read our magazine. Moreover, it is a way for us to provide more value for our readers as they will have the opportunity to influence the magazine and how it is perceived by other viewers. Another asset to this program is the editors will have actual 17-24 year olds to bounce ideas off instead of having to put their thinking caps on to create stories with the mindset of a teenager. By using television as another channel of distribution we can better use the media options available to us. Teen Vogue has seen success with their time on MTV’s the Hills but by creating a show solely based on Seventeen will help us stand apart from Teen Vogue as well as gives us more control of how we want our publication to be perceived by those reading it and those who may begin to read the magazine or find an interest in the magazine industry in the future. Seventeen in the future will be for more than a publication of the Hearst Corporation but rather a all encompassing publication giving teenage girls and young adults a balanced representation of the of future opportunities at their figure tips besides great fashion and health advice. The introduction of a re- vamped television show may not be the best channel to pursue. Miss Seventeen which offered a college scholarship and internship with seventeen, in 2005[20], did not get picked up for a new season. However by learning from our mistakes and curtailing the contest more towards the likes of the Apprentice or placing an age limit on the contestants this may prove to be a great way to increase Seventeen’s exposure.
Recommendation #3 My third recommendation would put more emphasis on other channels such as creating a Seventeen store in New York City as well as smaller versions in stores across the nation selling Seventeen merchandise as well as looks seen in our issues. As previous data conducted by MRI Teen Mark 2008, 42% of frequent mall shoppers read Seventeen.[21] (See Figure 4)Although Seventeen does partner with department stores such as JC Penny, having its own store will allow us to have a physical presence with our readers. Teen Vogue has a similar venture as it opened Teen Vogue Haute in select malls. By creating a store where you can purchase what you see in the magazine or online, a more personal connection to the magazine can be made. In addition by creating a store for Seventeen may lead to future ventures such as clothing lines or other types of apparel that can be sold exclusively online or at a Seventeen store location. Also with a store we could run promotion and events such as shopping sprees, model calls or special guest appearances directly from our own store instead of dealing with the mall of venue in which we would need to rent out space. Creating a physical store in malls across the nation may not be economically feasible for the company. Creating a store in the teenage market will also put us in the line of fire of many other competitor s such as Forever 21, Hollister, American Eagle, all of which we feature in own publication. However, creating an online component to the website may compact any cons to the cost of building promoting and stocking multiple stores.
[pic]
Figure 4- Seventeen Readers among Mall shoppers

Works Cited
Banco, Eleanor. Email Interview. 7 Apr. 2009.
Clifford, Stephanie. “In Switch, Magazines Think About Raising Prices” The New York Times. 12 Apr. 2009. 24 Apr. 2009 http://www.nytimes.com/2009/04/13/business/media/13circ.html?_r=1&ref=todayspaper.
Conde Nast. 2009 12 Feb. 2009 .
“51112 - Magazine & Periodical Publishing in the US - Industry Report.” 24 Dec. 2008. IBIS World. American University Library, Washington, D.C. 12 Feb 2009 .
Hearst Corporation. 2009. 10 Feb. 2009 .
Lucia Moses. . "Dividing Into Cliques.” Mediaweek 13 Nov. 2006: 8,10. ABI/INFORM Global. ProQuest. American University Library, Washington, D.C. 25 Mar. 2009 http://www.proquest.com/. MTV.com.2009. 7 Apr. 2009. http://www.mtv.com.
Sarah Ellison and Emily Steel. . "To Lure Teens to Its Latest Web Site, Conde Nast Turns to the 'Flip Squad'. " Wall Street Journal [New York, N.Y.] 19 Dec. 2006, Eastern edition: B.1. ABI/INFORM Global. ProQuest. American University Library, Washington, D.C. 6 Apr. 2009 . “Seventeen a Publication of the Hearst Corporation”. (2009). SRDS Media Solutions. American University Library, Washington, D.C. 13 Feb. 2009 .
“Teen Vogue.” (2009). SRDS Media Solutions. American University Library. Washington, D.C. 13 Feb. 2009 . “The Teens Market in the U.S.” Packaged Facts June 2007. Market Research.com Academic. American University Library, Washington, D.C. 17 Feb. 2009 .
"Trouble in Teen Land. " Mediaweek 26 Feb. 2007: 30,32. ABI/INFORM Global. ProQuest. American University Library, Washington, D.C. 2 Apr. 2009 http://www.proquest.com/.

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[1] Heast.com

[2] Condenast.com
[3] Hearst.com
[4] 51112-Magazine & Periodical Publishing in the US- Industry Report
[5] “In Switch, Magazines Think About Raising prices”
[6] 51112-Magazine & Periodical Publishing in the US- Industry Report
[7] "To Lure Teens to Its Latest Web Site, Conde Nast Turns to the 'Flip Squad'.

[8] Hearst.com
[9] Heast.com
[10] “Dividing into Cliques”
[11] “The Teens Market in the U.S.”
[12] Interview with Eleanor Banco 4/3/09
[13]“ Dividing into Cliques”
[14] Interview with Eleanor Banco
[15] “Trouble in Teen Land”
[16] “Trouble in Teen Land”
[17] SRDS Media Solutions Database- Seventeen and Teen Vogue
[18] SRDS Media Solutions- Teen Vogue
[19] Heast.com
[20] MTV.com
[21] Hearst.com

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Figure 1- See foot not 4

Magazine Market and Periodical market trends for 2009

Figure 2- see footnote 4

Magazine and periodical industry sales revenue forecast in the United States