The Group Publishing, Inc. (Group Publishing) is the publisher of “Artists In Business” magazine. The magazine, which has already printed an initial issue in July/August 1996 is directed at artists at all levels of business throughout the United States. Group Publishing is aiming to have a total combined circulation #8220 of Artists In Business #8221 in year one and a further increase of 310,000 by the end year three. The magazine will be published bi-monthly with increased press runs throughout the first three years. Sample distribution, organizational sales, and direct mail to targeted lists of artists will be utilized to build subscriptions.
Group Publishing will also market books through direct marketing, as well established artist distribution channels. The direct marketing of Group Publishing books will be implemented through its magazine readership base.
Publishing is a high-profit, high-margin business. The key to success is successful marketing. The Group has a highly focused multi-dimensional sales and marketing plan to build its total circulation base quickly. The same channels, methods and strategies were used to establish a circulation level of 500,000 in just one year for Visionary Artistâ€™s periodical.
The Group’s plan is a success. It will generate sales revenues of $3.1million, $4.8million, and $6.4million for the first year. Over the next three decades, the net profit is expected to increase steadily.
The following chart illustrates the key points of the business strategy. Sales, margins, and net profit increase each year. The first year has the lowest margins due to marketing costs for building the circulation base.
The Group’s initial goals are:
- To raise seed capital of $150,000 in order to publish by month two. Also, to establish a cash reserve to cover market subscriptions.
- Direct sampling and marketing will allow us to reach 90,000.
- Organizational sales will enable us to add 50,000 subscribers before the end of the first year.
- To sell 10,000 more 2-year subscriptions.
- Two 36 page issues will be published initially, each with 50,000 promotional copies.
- To increase the number of promotional copies to 75,000 by increasing press runs to 72 pages per issue number 3.
- In issues 5 and 6, there will be 100,000 more promotional copies.
- The average ad cost will increase from $1,819 up to $2,618 over the course of the first year.
- To sell an average of 17.5 ad pages per issue throughout year one.
“Artists in Business” magazine is for any artist who works at any level. The magazine will be a platform to highlight artists who have artistic visions in the marketplace. It will also serve as a role model for other women. Group Publishing, through its magazine, books, and editorial content, will be a vessel to inform artists about artistic principles in everyday business and will encourage interaction among artists as business people. Our mission is promote the notion of ‘#8220â€™ 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 maximum on subscription marketing for the first year.
- Monitoring the response rates to all media executions is important.
- Follow-up marketing for two to four books in the first one year.
- Attaining targeted sales revenues from advertising
- Each issue must contain high-quality editorial content.
- Each issue should be produced and distributed in a timely manner.