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. 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 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.
In addition, Group Publishing will market books via direct marketing and through established artist distribution channels. The direct marketing of Group Publishing books will be implemented through its magazine readership base.
Publishing is a high profit and 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 and methods were utilized to establish a circulation of 500,000 in the first year for the Visionary Artist's periodical.
Successful execution of The Group's plan will produce sales revenues of £3.1 million in year one, £4.8 million in year two, and £6.4 million in year three. Net profit will increase steadily over the next three years.
The highlights of the business plan are illustrated in the following chart. Sales, margins, and net profit increase each year. The lowest margins occur in year one, reflecting the marketing costs of building the circulation base.
The initial objectives of The Group are as follows:
To raise seed capital of £150,000 to ensure publication by month two and to establish a cash reserve to market subscriptions.
To have 90,000 subscribers by the end of year one through direct sampling and marketing.
To have an additional 50,000 subscribers by the end of year one through organizational sales.
To have 10,000 more two-year subscriptions sold.
To publish two 36 page issues initially with press runs of 50,000 promotional copies each.
To go to 48 pages by issue number three and increase press runs to 75,000 promotional copies.
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.
To sell an average of 17.5 ad pages per issue throughout year one.
"Artists In Business" magazine is for the artist who is a worker 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, 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 to promote the concept of "community" in the workplace.
1.3 Keys to Success
The keys to success are:
Attaining targeted circulation levels.
Controlling costs while spending the maximum on subscription marketing in year one.
Carefully monitoring response rates of all media executions.
Follow-on marketing of two to four book titles in the first year.
Attaining targeted advertising sales revenues.
Having quality editorial content in each issue.
Making all production and distribution dates in a timely fashion for each issue.