Motoring Publishing & Media Group Business Plan
1. EXECUTIVE SUMMARY
Wheels Alive! is a new motoring magazine which will be the flag-bearer for a new motoring media group to ultimately comprise a print, internet and tablet (iPad and similar) edition, weekly industry newsletter, weekly television programme and numerous brand extensions. The latter may include additional niche publications (Road Test Annual; Off-Road Annual; Outdoor Destinations Quarterly; etc) as well as niche businesses (for example a driving school and online retail outlet) related to vehicles, motoring and motorsport.
While a difficult economy has slowed demand for new vehicles (the most frequently-quoted ‘barometer’ of the motor industry) compared to the heady days of a few years ago, the reality is that the emerging market of consumers is generating a high level of interest in cars, bakkies, 4x4s, leisure/lifestyle vehicles – and, indeed, all things automotive – which was undreamed of a decade ago. New vehicle sales for 2012 are predicted to rise by 10% compared to 2011, and demand in the ‘used’ sector is strong. Similarly, suppliers of automotive accessories, tyres, etc continue to do well.
As greater numbers of ‘newly affluent’ South Africans become more financially secure and social culture evolves to accept private transport (as opposed to public transport like taxis, buses and trains) as both a normal means of travel and a leisure/lifestyle enhancer, we can expect demand for vehicles to continue to grow (and evolve) for decades to come.
Related to this is the desire for information about motoring – facts, opinions, new model launches, road tests, practical advice and impartial commentary which can enhance the driving experience and assist with making the right automotive choices. Familiarity with the automotive world also breeds the desire for motoring entertainment or ‘moto-tainment’, as the likes of BBC’s Top Gear and its various global imitators have shown.
All of the above will be key elements of theWheels Alive! unique selling proposition, although the established market of motoring enthusiasts will certainly not be ignored or marginalised by the editorial approach.
Wheels Alive! is being headed by an experienced publishing partnership. Johan Blignaut, former Managing Director and Publisher at Big City Media, is investing R500 000 of his own capital into the venture, which will secure a lease on premises and assist with initial set-up costs. Bernard Plaatjies, former Editor of Motor World magazine, is the junior partner and is investing R200 000.
In addition, a loan of R900 000 is being sought to provide working capital during the first two years of operation and, in particular, assist with initial printing, equipping and staff costs until such time as sufficient cash flow can be generated.
