CATALOG & MAGAZINE PRINTING OUTLOOK — TURNING THE PAGE
RR Donnelley has also made significant investments in its Publishing and Retail Services platform. For example, earlier this year, RR Donnelley announced the expansion of the North American print logistics operations with the opening of a new mail consolidation facility— featuring complete distribution management services—in suburban Dallas. As a result of this investment, customers in this region can realize enhanced postal drop ship cost savings and access to an extensive consolidation network.
“At the same time, we have accelerated cross-selling efforts, bringing to our magazine customers an effectively integrated breadth and depth of print and print-related services,” says Rick Marcoux, president, magazines, RR Donnelley.
Commenting on the proposed postal rate increase, Marcoux feels the USPS is looking to “discourage” mailing behaviors counter to their focus on expanded automation. He anticipates that magazine publishers will concentrate on:
• Getting out of mail sacks and focusing on co-mailing and co- palletization.
• Assessing the size of their publications in addition to the traditional focus on weight.
• Working on address hygiene will be even more critical than in the past as the USPS takes a tougher stance on undeliverable mail.
“As always, any increase in distribution costs has a negative effect on print volume because publishers have finite budgets,” adds Cadmus’ Hanson. “We are actively researching and implementing new ways of combining mailings to offset a portion of the proposed increase.”
Printers also report that their publishing customers are embracing digital media as complementary avenues for their brand extensions.
“Our publishers create content and then we help distribute it in many forms—one of them being print,” Hanson advises. “Our job is to help customers most efficiently distribute their content to end users in whatever form that takes—including print.”
Brand extension launches through electronic channels, in addition to Websites, may include Podcasts, satellite radio, text messaging and alternative portals, such as MySpace pages.