Group Publishing, Inc. (Group Publishing), publishes “: Artists In Business. 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. Subscribers will be built through sample distribution, organizational sales and direct mail reaching targeted artists lists.
In addition, Group Publishing will market books via direct marketing and through established artist distribution channels. Group Publishing’s magazine readers will provide direct marketing for its books.
Publishing is a high income and high margin business. A successful marketing strategy is essential for success. The Group has developed a multi-dimensional, highly focused marketing plan that will quickly grow its total circulation. These same channels and methods were used to establish a circulation figure of 500,000 for Visionary Artist’s periodical in its first year.
The Group’s plan can be successfully executed to generate sales revenues in the range of $3.1 million in year 1, $4.8 million in years 2, and $6.4 million three. Net profit will increase steadily over the next three years.
The following chart illustrates the key points of the business strategy. Each year, sales, margins and net profit rise. The first year is the most profitable, due to the marketing expenses of growing the circulation base.
1.1 Objectives
The Group started with these objectives:
- 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.
- Organizational sales will enable us to add 50,000 subscribers before the end of the first year.
- To sell another 10,000 two-year subscriptions.
- Two 36 page issues to be published in the initial press run of 50,000 promotional copies.
- To expand to 48 pages with issue number three, and to increase press runs up to 75,000 promotional copies.
- In issues five-six, 100,000 promotional copies will be printed.
- Increase average ad page cost from $1,819 to $2,618 by the end of the first year.
- Each issue will sell on average 17.5 ads pages during year 1.
1.2 Mission
“Artists in Business” magazine is for any artist who works at any level. The magazine is dedicated to being a platform for artists who can represent artistic vision in a marketplace and who can both inspire and provide role models to others. 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 in life is to promote the notion of #8220community#8221 at work.
Success Keys 1.3
The keys to success are:
- Attaining the targeted circulation levels
- Controlling costs while spending the maximum on subscription marketing in year one.
- Monitor all media executions carefully for response rates.
- Follow-up marketing for two to four books in the first one year.
- Attaining targeted sales revenues from advertising
- Each issue should contain quality editorial content.
- Each issue’s production and distribution dates should be met promptly