Edge Free IT Magzine
- 1. Business Plan: EDGE Free IT Magazine Group 5 Rizwan Chand
- 2. EDGE - Agenda 1. Mission & Strategy 2. Product Description 3. Target Market 4. Marketing Strategies 5. Operational Plan 6. Management & Administration 7. Financial Projection & Funding 8. Implementation
- 3. 1. Mission & Strategy Mission Values EDGE is a free megazine to deliver ideas, creativity and complete coverage of information world. An effective dynamic tool for advertiser to maximize exposure. Vision To become leading source of information in the field of Information technology. Deliver Information, Ideas, Creativity & exposure to customers Objectives Create the wealth of owners and maximized Venture Capitalist investment in the company. Strategies Stability (Pause & Proceed with Caution) Goals Become leaders in Information Service Provider
- 4. 2.1 General Description A free of cost Magazine to provide Information related to technology world. Provide comprehensive information and review about latest technology products and services. Provide guide, tutorial and tips to use different technology products (physical/software) Guide to social media online and how to be secure online. Interesting gadgets, websites and games available online and offline (free/paid).
- 5. 2.1 General Description cont Letters to us News Social Media Ask the expert (PC, Advice, Software etc ) Tutorials Best Buy Hints & Tips Interactive Practical (feature, expert, reader tips, reviews) Workshop Freebies (software/players/offers)
- 6. 2.2 Key Features Wide range of content/topics Easy to understand extensive tutorials/guides Lowest subscription charges Readers can contribute and interact Low price advertising space
- 7. 2.3 Main Benefits Easy to understand for beginner Provide information to be smart online and offline use Provide guide to purchase software/computers Easy to subscribe Available wide range of places (init. Birmingham)
- 8. 2.4 Pricing Plan Price 贈0.00 - Free of Cost Subscription Charges 贈0.42p per issue Free of cost first 6 issues and 贈5 every 6 months (12 issues, 42p per issue)
- 9. 2.5 Competitors' Offerings Direct Competitor All Consumer Magazine Indirect Competitor Online Magazine
- 10. 2.6 Competitive Assessment Target to professionals Not enough marketing Very technical for normal user Not much interaction Focused on web technology
- 11. 3.1 General Background Audit Bureau of Circulations Report for 2009 Total UK magazine circulation during the period was 75,367,795 - a drop of just under 2,000 compared to the second half of 2008 Out of the 112 publishing sectors identified by ABC, only 29 managed a positive year-on-year circulation growth; eight recorded a double-digit growth. The PPA calculates that more than one billion magazines were sold in 2009 and that consumer paid-for circulation fell by 1.3 per cent in the second half.
- 12. 3.2 Size, Segments & Trends Total sales (and year-on-year percentage change) in key sectors in the last six months of 2009: Men's Lifestyle - 2,312,709 (-4.4%) Music: Rock - 570,349 (-7.0%) News & Current Affairs: Business & Finance - 1,724,966 (5.7%) News & Current Affairs: Domestic - 557,513 (3.4%) News & Current Affairs: International - 829,273 (0.0%) News & Current Affairs: Science - 151,324 (-9.2%) TV Listings: Radio & TV Guides - 4,845,410 (-5.8%) Women's Interests: Women's Lifestyle/Fashion - 6,580,758 (4.7%) Women's Interests: Women's Weeklies - 8,612,830 (2.9%) Paid-for circulation among the top 100 titles has dropped 17 per cent in the last decade. And that's a trend that's only going in one direction. But is still space for new launches: Conde Nast's Wired is on course to reach its target of a 50,000 average per-issue sale by its first anniversary in May - it recorded an average sale of 48,275 in the last half of 2009.
- 13. 3.3 Review of Competition 83 Titles in UK Main Competitor PC Pro User Active Web User Micro Mart Content Mainly targeting IT professionals or readers familiar with technology world and language Price Pricing ranges from 贈1 - 贈3 Subscription charges around 6p first 6 months and then almost the same price.
- 14. 3.4 Customers/Users Advertiser Advertisers are the main customer Wide range of advertiser market Product Brands Dell, HP, Apple, Xerox, Sony, Samsung etc Service Provider Hosting & Domain, Design Agency, Web & Desktop Application Developers Online Website Online retailers and service provider
- 15. 3.5 Medium-Term Projections Birmingham Local readers (Caf辿s, Train stations and local retailers) UK universities and higher education institute (166 universities and 22 local colleges & learning centers) IT service providers (25,000 IT service providers throughout UK) Future Projections Expanding to London local readers Other products retail stores Increasing subscription to 30,000
- 16. 3.6 The Market Condition: Competitor Analysis IT Magazine for sell Free magazines/ newspapers To provide the updated IT News and product review To provide local news and eventsObjectives Differentiation Cost LeadershipStrategy Key Strengths: -Have know how of IT Magazine -Knowledgeable in IT field columnists and staffs -Strong connections within IT industry Key Weaknesses: - The limited number of readers since people tend to research online Key Strengths: -Accessibility -High circulation (since its free) -Attractive to various ad buyers -Closely bond with local community Key Weaknesses: -Difficult to identify the readers and the ad buyers Resources & Capabilities No reaction since were not the direct competitor. And, therere the large number of advertisers. The competitors source of revenue might not be effected. Prediction
- 17. 4.1 Key Marketing Strategies Key marketing strategies Attracting advertisers based on high distributions and targeting on wide range of readers which are interested in any IT and computer tech Marketing - Targeting: All companies which related to IT and computers - Pricing : Setting relatively cheaper ad space than paid magazines which have big circulation - Products : Contents which covered wide range readers from beginners to skilled readers
- 18. 4.2 Sales Forecasts Ad space prices and estimated sales EDGE Distribution 50,000 copies Total 50 pages Ad 15 pages (30% of whole magazine) Main Ad (per issue) no. of ad page price sales front cover - - 2,200 2,200 inside front cover - - 2,400 2,400 inside back cover - - 2,300 2,300 outside back cover - - 2,500 2,500 full 4 4 1,000 4,000 1/2 page 12 6 600 7,200 1/4 page 20 5 350 7,000 15 27,600 Small Ad (per issue) no. of ad page price sales small ad page 24 1 150 3,600 Sales (per issue) 31,200 Sales (per month) 62,400
- 19. 5.1 Operational Plan Printing House Delivery 15,000 GBP Office Location Liberty Place Sheepcote Street, Birmingham, B16 8AE (1,333 GBP per year) 1. Must deliver from printing house to magazine stands. Lease 2 trucks for 400 pounds per month, 12 months contract 2. Post to University Libraries across UK (50 P delivery fee TBC) Magazine stands in Birmingham 102 physical Locations in Birmingham & mail to other city -161 Colleges & Universities in whole uk -21 Colleges & Universities -20 Train stations -1 Birmingham Central Library -20 Learn Direct schools -18 Internet Caf辿 -9 Currys stores -30 Chained coffee shop - 6 Caffe Nero/9 Starbucks/ 10 Costa/ 5 Pret A Manager
- 20. 5.2 Operating Cost Projection Item Type First Month Cost (GBP) Monthly Cost (GBP) Office Space Rental Operating Expense 111 111 Office Expense Operating Expense 1,000 1,000 Office Suppliers Operating Expense 316 290 Delivery Cost Cost of Sales 800 800 Printing Cost Cost of Sales 15,000 15,000 Megazine stand Cost of Sales 15,000 Total 32,227 17,201
- 21. 6. Management & Administration: Annual Pay roll Position Monthly Salary Number Total Editor 3,167 - In-house writer 1,583 - Freelance writer 6000 graphic designer 917 - web developer 1,500 - Total Editorial Department 6000 Managers - Operation 2,500 - - Sales & Marketing 2,500 - - HR 2,500 - - Business Development 2,500 - Staffs 1,250 - Total Other Department -
- 22. 7. Financial Projection & FundingFirst 6 months revenue Jan Feb Mar Apr May Jun Sales 62,400 62,400 62,400 62,400 62,400 62,400 Cost of sales *1 32,400 32,400 32,400 32,400 32,400 32,400 Gross Margin 30,000 30,000 30,000 30,000 30,000 30,000 Total Operating Expense *2 32,211 20,711 20,711 20,711 20,711 20,711 Income from Operation -2,211 9,289 9,289 9,289 9,289 9,289 Other income, interest *3 0 0 0 0 0 0 Net Income before tax -2,211 9,289 9,289 9,289 9,289 9,289 Tax (30%) 0 2,787 2,787 2,787 2,787 2,787 Net Income -2,211 6,502 6,502 6,502 6,502 6,502 *1: printing cost, salary of Editorial department (6 staffs+2 editors??) *2: All other cost that's not cost of sales *3: We will have to borrow money from bank. The interest rate per month is 0.88% (Lloyds TSb) borrowing 1,000GBP rate 0.88% Payback 1year
- 23. First Year Pre-launch 1 month for setup and hiring 2 month publication starts Launch Streamline next issue Marketing & Subscriber Sub-sequent Year Expand to other cities (London, Manchester) Increase Quality of Content & No. of Pages 8. Implementation