The Group Publishing, Inc. (Group Publishing) is the publisher of “Artists In Business” magazine. The magazine, which printed the first issue in July/August 1996 and is directed to artists of all levels within the United States, has been published several times since then. The management of Group Publishing is targeting a total combined circulation of “Artists In Business” of 206,000 in year one, increasing to 310,000 by the end of year three. The magazine will be published bimonthly with increased presses during the first three-years. Subscriptions can be built using sample distribution, organizational sale, and direct mail targeting artists.
In addition, Group Publishing will market books via direct marketing and through established artist distribution channels. Group Publishing will market books directly through its magazine readership.
Publishing is a high-profit, high-margin business. Successful marketing is the key to success. To increase its total distribution base quickly, the Group employs a multi-dimensional sales strategy and marketing plan. The same channels and methods were utilized to establish a circulation of 500,000 in the first year for the Visionary Artist’s periodical.
The Group’s plan, if executed well, will result in sales revenues of $3.1million the first year, $4.8million the second year, and $6.4million the third year. Net profit will increase steadily over the next three years.
The following chart shows you the highlights of your business plan. Each year, sales, margins, as well as net profit, increase. The marketing costs involved in building the base of circulation are the reason for the lowest margins.
1.1 Objectives
The initial objectives of The Group are as follows:
- To raise $150,000 seed capital to ensure publication by the second month and to create a cash reserve for market subscriptions.
- Direct sampling and advertising will help to achieve 90,000.
- To reach an additional 50,000 subscribers in year one by means of organizational sales.
- To have 10,000 more two-year subscriptions sold.
- Two 36 page issues will be published initially, each with 50,000 promotional copies.
- To go to 48 pages for issue number three and increase presses runs to 75,000 promotional copy.
- Increase to 100,000 promotional copies in issues five and six.
- Increase average ad page cost from $1,819 to $2,618 by the end of the first year.
- Achieve an average of 17.5 Ad Pages per Issue during the first year.
1.2 Mission
“Artists in Business” magazine is for any artist who works at any level. The magazine has a commitment to be a platform to profile artists who are representing artistic vision in the marketplace and who can both encourage and provide role models to other men and women. Group Publishing through its magazine, books as well editorial content will provide information to artists about artistic principles in everyday businesses and encourage interaction among businesspeople. Our mission is to spread the idea of “community” in the workplace.
1.3 Keys to Success
These are the keys to your success:
- Attaining the targeted circulation levels
- Controlling costs while spending the most money on subscription marketing in the first year.
- Monitor all media executions carefully for response rates.
- Follow-on marketing of two to four book titles in the first year.
- Attaining targeted advertising sales revenues.
- Each issue should contain quality editorial content.
- Every issue must be printed and distributed on time.