.. ng the opening of the newspaper and magazine markets. Due to economic growth, the increasing purchasing power of the population made the Hungarian market an attractive outlet in terms of potential demand for such products. Changes at social level with regard to open-mindedness, career-orientation and eagerness to be trendy and fashionable, constituted additional benefits of this market. Finally, technological advances have allowed publishing houses to execute high-quality printing and produce aesthetically – accomplished products.
STRUCTURE OF THE MAGAZINE Each issue consistently includes four equally-sized editorial pillars: beauty, fashion, career and sex. In addition, the magazine includes articles of various lengths, which address issues of special interest to Hungarian readers. Short articles on celebrities, traveling, cooking, health & fitness and decoration are mainly to be found in the first and last few pages. Long articles (sometimes translated and adjusted to the Hungarian environment) build up the body of the magazine. The ratio of Hungarian to international articles is 50-50%. The fashion pillar features 2 fashion stories on 8 pages each.
Both Hungarian and international models are used for the shootings: in the first year, 2 covers featured Hungarian models, whereas all the other covers were directly taken from the U.S. editions. Since it was lunched, the structure of the magazine was not significantly altered due to its international status. Some minor changes have occurred in terms of layout and were determined by the ever-changing fashion and beauty trends. Occasionally, Hungarian-customized articles about celebrities, beauty products and fitness tips, are included. The Hungarian culture is not dominant in the magazine due to the fact that Cosmopolitans intention is to present international trends to Hungarian women.
PRICING STRATEGY The price of HUF 395 only covers production and distribution costs. Editorial and miscellaneous costs are supported by means of advertising in the pages of the magazine. Cosmopolitan is highly successful in offering advertising services due to its huge sales volume . In order to keep and even surpass the current market performance, the magazine must stay competitive in terms of price as well; thus, it cannot afford setting a much higher price and losing market share, because important advertisers require a minimum sales volume of 50,000 units per issue so that their ads have a good impact. Moreover, Cosmopolitan offers its advertisers the possibility to promote their products through samples attached to the pages of the magazine (e.g., fragrances, creams, skin foundations, small catalogues etc.). This enables advertisers to reach their target consumers even more effectively. PROMOTION MIX ADVERTISING Cosmopolitan heavily relies on advertising: 60% of all promotional activities are above-the-line activities, whereas 40% take the form of sales promotion and public relations. Due to special characteristics of the target group, it is necessary that in addition to traditional communication channels (TV, radio, billboards), the product is promoted in cinema multiplexes, fitness clubs, beauty salons, hairdressers and restaurants.
During an advertising campaign, the feedback from the target audience is evaluated in terms of increases in sales volume, above-the-line GRPs and through panel research. A successful advertising campaign is one that boosts demand and, in turn, sales. Difficulties were encountered in the launch advertising campaign. The Consumers Protection Office sued Cosmopolitan for the outrageousness of its launch advertising posters; however, the magazine was exempted from paying a penalty fee in the end. This conflict came to the advantage of Cosmopolitan – which demonstrates the validity of the old saying negative publicity is good publicity.
Business-to-business marketing is an area of main concern for Cosmopolitan, which is also challenged with creating a favorable image to its business customers. The advantages offered by Cosmopolitan as an advertising medium itself are as follows: it fills the existing gap of the glossy magazines in the advertising market; its quality is guaranteed by the international background; it has a well-defined target audience who tend to spend a lot of money and can afford the magazine; its readers believe in Cosmopolitan; it fits to premium quality products; it has quality content, layout, paper and printing; it offers the possibility for various creative units. Cosmopolitan offers discounts on its advertising rates to important business customers, as well as creative possibilities for them to realize their advertisements, such as binding, sticking on a page, inserting, foiling and double covers (for more technical details about business-to-business marketing, see appendix). SALES PROMOTION Cosmopolitan organized a host promotion after its launch, whereby young men offered leaflets and brochures about Cosmopolitan to young women, with the purpose of convincing them to buy the magazine. Additionally, a certain numbers of issues is given out for free to readers on a monthly bases.
This also aims at increasing demand. The chart below reveals the patterns of free issues offered to potential readers as a promotional activity: Persuading readers to subscribe and keeping current subscribers are also areas of major concern for Cosmopolitan. At this moment, the magazine has some 1,200 subscribers. Cosmopolitan always has special offers for potential subscribers (they are either able to order a product through the magazine or buy it cheaper from the stores, they are offered extra gifts etc.). Readers do not seem to be very responsive to these initiatives, though . Yet, products advertised in Cosmopolitan are highly successful because of the powerfulness and persuasiveness the magazine emanates to its target consumers.
PUBLIC RELATIONS In accordance with other international glossy magazines, Cosmopolitan has organized a fashion show; on that occasion, it invited the TV stations, newspapers and numerous magazines in an attempt to get exposure in these specific channels. However, it is rather difficult for Cosmopolitan to get favorable reviews in other communication media, since all publications and audio-visual instruments are actually competing with each other for an ever-increasing number of consumers. Cosmopolitan is considering sponsoring some beauty and modeling contests next year; it has not done it so far because of the negative image attached to this type of events in Hungary. Unlike other companies such as Coca~Cola and Procter&Gamble, Cosmopolitan has decided not to associate its name with these events yet. CONCLUSIONS An internationally famous glossy magazine, Cosmopolitan is a high-quality product with a clearly-defined brand image and a competitive pricing strategy. Its promotion mix is adequately tailored to persuade and maintain the loyalty of its customers. Our findings once again demonstrate that Cosmopolitan is a highly successful product with a well-defined target group and an increasing market share in Hungary as elsewhere in the world.
APPENDIX: BUSINESS-TO-BUSINESS MARKETING Technical details of the magazine: FREQUENCY: monthly FORMAT: 205 * 276 mm PRINT TECHNIQUE: 4 color offset PAPER QUALITY: 70 gr WC and 170 gr ART TOTAL NUMBER OF PAGES: between 132 and 164 pages COVER PRICE: 395 HUF INTRODUCTION COVER PRICE (1st and 2nd issue): 350 HUF ESTIMATE SOLD COPIES/ISSUE: 60,000 ESTIMATED PRINTRUN/ISSUE: 75,000 Advertising rates: SIZE FULL COLOR Cover IV HUF 800,000 Cover II HUF 770,000 Cover III HUF 715,000 1/1 page HUF 550,000 1/2 page HUF 350,000 Discounts: 2-3 pages 2% 4-5 pages 4% 6-8 pages 6% 9-11 pages 8% 12-17 pages 10% The above prices do not include 25%VAT. Information: Erasmus Press Kiadoi Kft. Advertising department Address: 1134 Dosza Gyorgy ut 150 Phone: 361 2703457 Fax: 361 1403709 LIST OF SOURCES 1) INTERVIEW WITH MS. ENIKO HORVATH, MARKETING MANAGER OF COSMOPOLITAN HUNGARY 2) COSMOPOLITAN ISSUES: NOV. 1997 – NOV. 1998 3) SANDOR ZSUZSANNA – HOLGYVALASZ IN: 168 ORA 1998/9 4) MATESZ SUCCINCT PRESENTATION – 1998 5) INTERNET.