S.W.O.T. ANALYSIS

Strengths

• Partners who are highly experienced and credible. As such, they will attract top quality talent in terms of motoring journalists, advertising salespeople and marketing/promotions personnel.
• Commitment to credibility and impartiality in an industry where most motoring publications (print or online) lack credibility/impartiality and are viewed by the public as “being in the pockets of the motor industry”. The result is that the public’s most important requirement (impartial advice and information) remains unfulfilled.
• An understanding that the role of Wheels Alive! is to deliver motoring-related content via any communication channel which is relevant to the consumer. While the initial focus is on a print magazine – the format still most relevant and trusted by readers and, crucially, advertisers – this will be broadened to include a website, digizine (online version of the magazine available to subscribers), iPad-friendly version of the magazine (and other similar ‘tablet’ platforms once they become established), Facebook and Twitter presence, online video offering, and a television programme. This is a point of difference from competitors, which focus almost exclusively on a single communication channel, with limited (if any) commitment to the other methods of content delivery.
• Unlike more staid competitors, Wheels Alive! advertisers will be able to use all of the above to engage with consumers via multiple communication channels and innovative marketing strategies. This multi-platform approach to marketing is still in the early stages in South Africa, but can be expected to evolve rapidly.
• A commitment to deliver ‘info-tainment’ as part of the package of credible motoring coverage.
• A commitment to extending the brand into other profitable areas such as an online shop, driver training school, motorcycle publication, and dedicated off-road publication.

Weaknesses

• Lack of an established brand name. The high failure rate of magazines in the current difficult economic environment means that advertisers are hesitant to spend money with new titles, and are particularly loath to commit to advertising contracts.
• Similarly, initial shelf sales will be slow and readers will not commit to becoming subscribers (the lifeblood of magazines) until there is an indication of longevity. This lack of initial circulation will also discourage advertisers.
• Reputable printers will require up-front payment (or at least a substantial deposit) in the early stages. Because printing is the biggest single recurring expense, this will hamper cash flow.
• High unit cost per printed copy in the early stages, due to low circulation and no economies of scale.
• Specialist magazine distribution companies (understandably) tend to concentrate their efforts on established, high-circulation titles. Therefore, Wheels Alive will initially not receive true national distribution (particularly in smaller towns and in low-sales outlets such as cafés and rural service stations) and will also suffer from poor shelf placement in many stores.

Opportunities

• Motoring readers and advertisers are crying out for something ‘new’, ‘different’ and ‘credible’.
• The demand for ‘info-tainment’ / ‘moto-tainment’ is on the rise in South Africa, driven by the likes of international titles and programmes such as Top Gear. However, as yet, local publishers have not embraced this trend.
• Electronic media & social media synergies (iPad, Facebook, Twitter, branded TV programme, etc) still remain largely unexplored among South Africa’s motoring media outlets.
• Brand extensions such as driver training schools, online shop, etc have been similarly unexplored.
• The multi-channel distribution of content will provide advertisers with new and innovative ways of reaching an increasingly tech-savvy motoring audience.
• Wheel’s Alive!’s established electronic platforms will enable it to seamlessly move its emphasis from print to other distribution channels when the decline of print becomes more marked at some point in the future.

Threats

• The biggest player in the market may adopt a more progressive and aggressive strategy, including a greater emphasis on electronic and social media distribution channels.
• Competitors could adjust their editorial content and also seek to become more credible and ethical.
• Already-popular international motoring titles/programmes may extend their operations into South Africa in a more significant way.
• Cash flow problems in the early stages due to low circulation, limited advertising and the need to potentially pay for some services up-front.