7. MARKETING STRATEGY
7.1 Pricing strategy
7.1.1 Consumers
Wheels Alive! will have an initial cover price of R26.50, versus the R31.00 of the dominant player. The smaller/niche publications in this sectors are typically around R24.00. The philosophy is to undercut the dominant player, while at the same time differentiating ourselves from the ‘rats and mice’. Subscriptions (over 12 months) will offer a saving of 20% on the full cover price.
7.1.2 Advertisers
Initially advertising rates will be 50% below that of the dominant player (which obviously has a far larger circulation and audience reach). Contract advertisers will have that reduced by a further 5%, provided they sign a 12-issue contract. Rates will be re-evaluated after year one.
Similarly, website advertising rates will be 50% below that of the dominant player. For contract advertisers in the magazine, web-based advertising will be packaged at a further reduced rate for the first year.
Further advertising packages applicable to the iPad edition and TV programme will be offered once these channels are up and running.
7.2 Promotion strategy
7.2 .1 Consumers
- Presence at local and regional motorshows. Including giving away (sampling) of back copies;
- Presence at local and regional motorsport events. Including giving away (sampling) of back copies;
- Point-of-sale promotions at CNA and other retail outlets;
- Google ads to promote website;
- Advertising in the motoring pages of selected newspapers;
- Cross-promotions between magazine and website (to be expanded to iPad, TV, etc once these are operational);
7.2.2 Motor industry/advertising agencies
- Cross-promotions between magazine and website (to be expanded to iPad, TV, etc once these are operational);
- Promotional roadshows to motor industry manufacturers and importers, as well as their advertising agencies, prior to launch;
- Production of a dummy issue of the magazine to serve as a sales tool prior to launch;
- Ongoing visits to the above by the publisher, editor and sales team;
- Distribution of complimentary copies of the publication to key people in the motor industry and advertising agencies.
7.3 Placement strategy
Magazine-based content will be delivered via print, electronic (e-mail) and iPad editions; selected and differentiated content delivered via the website; selected and differentiated content delivered via a television programme. There will also be a weekly motoring newsletter which is distributed free to subscribers, advertisers and the motor industry.
7.4 Distribution channels
Print edition to be sold via CNA and Exclusive Books outlets, the network of Spar supermarkets, forecourt stores at filling stations, and various other smaller/independent retailers serviced by National Magazine Distributors.
Subscriber copies will be sent via the postal service, per arrangement with Logan’s Web Printing. Requests for the electronic edition (e-mail) and the iPad edition will be serviced internally by Wheels Alive! staff, with support from Crazyweb and Dan the Computer Man. Website to be serviced internally, with support from Crazyweb At a later date, DSTV will become the distribution channel for Wheels Alive! television programming.
7.5 Advertising and Marketing budget
| Launch to motor industry/ad agencies: | R 15 000 |
| Launch presentation & info pack: | R 10 000 |
| Collateral for sales team: | R 10 000 |
| Point-of-sale retailer promotions: | R 40 000 |
| Promotions at events (motorshows, etc): | R 20 000 |
| Advertising: | R 50 000 |
| Miscellaneous: | R 10 000 |
| Total: | R155 000 |
7.6 Sales strategy
See points 7.1 and 7.2
7.7 Sales forecast (ad revenue + copy sales)
| March (launch month): | R 712 000 |
| April: | R 485 000 |
| May: | R 459 000 |
| June: | R 509 000 |
| July: | R 515 000 |
| August: | R 560 000 |
| September: | R 560 000 |
| October: | R 780 000 |
| November: | R 790 000 |
| December: | R 491 000 |
| January: | R 391 000 |
| February: | R 615 000 |
| Total revenue for year 1: | R6 867 000 |
* Copy sales and ad revenue will be strong in the first month due to strong promotion and interest in the publication. This will then decrease and slowly build up again as the publication becomes better known, peaking in the run-up to Christmas and dropping off in December and January.
