Topic: Strategic Management for Product Development of a sports

journal in Myanmar

Individual Research Proposal

Instructor – Dr. John Barnes

BP 6902 Business Research Methods

By Mr. Nyi Nyi Latt

ID 532-9077

Master of Business Administration

Fast-track Program

Assumption University
Word Count (6,661)
 CONTENTS
 Abstract
 Acknowledgement
 Table of contents
 List of figures
 List of tables
 References

Abstract

Purpose of this research paper is to assess the marketing strategies for the sports journal in Myanmar.
Questionnaires and interviews will be carried out for the market research. A mini marketing plan will
be developed throughout the study with projected profit and loss account and projected cash flows.

Acknowledgement

I would humbly like to express my deep and sincere gratitude to Dr. John Barns, Dr.
Ismail Ali Said and Dr. A. Bhumiphat Gilitwala (Modi) for providing their guidance for my
present study. I would like to thank Ma Sandra, Ma Sam Hom and Ma Myat Thuzar Tun, for
their suggestions and support to carry out this paper.

During this study, I have collaborated with many colleagues for whom I have great
regard and I wish to extend my warmest thanks to all those who have helped me with my study.

My appreciations also go to CEO, Board of Directors, Chief Editor and other faculty
members in Unique publishing for providing valuable information and data. My special gratitude
is due to my parents for the encouragement that they put on me to be present at this MBA
program.

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 Table of Contents

CHAPTER 1: INTRODUCTION TO SPORTS MEDIA........................................................1

Introduction..................................................................................................................................................................1

Background to the Study............................................................................................................................................1

Nature of the Problem................................................................................................................................................2

Purpose and Scope of the Study................................................................................................................................2

Assumptions..................................................................................................................................................................3

Research Question.......................................................................................................................................................3

Social Significance.......................................................................................................................................................3

Study Delimitation.......................................................................................................................................................3

Summary of Chapters.................................................................................................................................................4

CHAPTER 2: LITERATURE REVIEW..................................................................................5

Market Analysis...........................................................................................................................................................5

Competitive Advantage..............................................................................................................................................6

Benchmarking..............................................................................................................................................................7

Emerging strategies.....................................................................................................................................................9

Cultural model.............................................................................................................................................................9

CHAPTER 3: RESEARCH METHODOLOGY....................................................................11

Reliability and Validity............................................................................................................................................11

Data Collection...........................................................................................................................................................12

List of tables

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Table no. Description Page no.
3.1 Sales forecast 24

3.2 Milestones 25

3.3 Personnel Plan 26

3.4 Financial Assumptions 27

3.5 Projected profit & loss account 30

3.6 Projected cash flow 32

List of figures

Figure no. Description Page no.

2.1 Strategic Management Process 13

3.1 Revenue & Profit Comparison 19

3.2 Subscription copies sold 24

3.3 Sales comparison 25

3.4 Key Financial Indicators 29

3.5 Profit before interest & tax 30

3.6 Net Profit after tax 30

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Executive Summary
Unique Publishing Inc. is the publisher of “Unique Sports Journal”. The management of
Unique Publishing is targeting to publish “Unique Sports Journal” every week with unique
collection of articles and stories at the total circulation of 380,000 in the first year – 2012,
increasing to 510,000 and 586,000 in 2013 and 2014 respectively. The journal will be
published every week on Monday with increased press runs throughout the first three years.
Sample distribution, organizational sales, big billboards at the critical locations will be
utilized to build subscription.

In addition, Unique Publishing will market books through established distribution channels,
like Today Publishing, and street journal sellers. There will be fan subscription after six
months and the Journal will select one fan to meet local sports celebrity and let him or her
interview the celebrity. In this way, journal will be sold more and known well by word of
mouth. As Unique Publishing has its own press and the printing cost is very low and the
critical success factor of the journal business is efficient marketing campaign. Management
will use a highly focused multi-dimensional sales and marketing plan to build its total
circulation base quickly.

Successful implementation of the business plan of Unique Sports Journal will produce MMK
600 million in the first year of distribution, MMK 800 million in the second year and MMK
900 million in the third year. Net profit will increase steadily over the next three years. The
lowest margin occurs in the first year, reflecting the advertising and marketing costs of
building a brand name and circulation base.

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 Chapter 1: Introduction to Sports Media

Introduction
Myanmar is an agricultural country in Southeast Asia. British colonized Myanmar for more
than 100 years. Myanmar has population of more than 62 million. About 70% of Myanmar
men are interested in sports, especially in football which is also known as soccer in USA.
Football is sports introduced to Myanmar by the British.

Sports journal publishers in Myanmar are challenged to address the ranging various
expectations of indigenous sports journal readers. The question at hand is this: Are there
certain themes and images that resonate across ethnics and cultures, which can be used to
more efficaciously design an instructional framework for international sports journal? This
grounded theory will examine various readers’ reactions to different themes and images
projected through journal pages, within marketing and advertising syllabi.

Data will be collected through a variety of methods including observation, interviews and
document reviews, with sufficient safeguards to ensure study reliability and validity.
Following the data collection, the study will seek to identify and categorize any images and
themes that may resonate across diverse national and international cultural backgrounds,
within a theoretical framework that may be applicable to enhanced exposure to international
sports.

Background to the Study

Sports journal is often hailed as a means for reflecting or broadcasting what have been
happening in sports environment each day so that anyone who has missed out to watch their
favorite sports program would be able to check on the paper for brief information or story.
As global technological development may allow for advancements in sports accessories,
there exists an opportunity for publishing houses in Myanmar to meet the curiousness and

v
expectations of sports fans in Myanmar. This is an issue of particular importance to sports
journals in Myanmar. Football sports fans contribute 99% of population who buy sports
journals. To be successful in this outreach, editors and promoters must be prepared to
effectively deal with the demands of local sports fans where the benefits of including
international perspectives and local tastes are imperative.

Sports journal readers look at when the football match will be and what time, how the teams
will pay, their strategies, which football field they will play in, the conditions of the teams,
who will be playing, etc. The readers are also interested in their favorite teams competitive
situation among the other teams, their points, their favorite player’s life; what is going on,
who is try to buy him out, who

Nature of the Problem

Myanmar sports journalists are often ignorant and unaccommodating of the diverse and
ranging cultural variations found among indigenous sports fans. Though journalists cannot be
expected to become experts on the diversity of world sports, they can become better skilled
at finding methods to adapt to the challenge in a way that – while acknowledging cultural
variations – seeks to transcend them. The problem that this study will address is how to
develop more effective trans-cultural communication methods in international sports
presentation. Perhaps the process of cross-cultural communications could be enhanced by
analyzing efficacious models where cultural differences are not only bridged but also
transcended.

Purpose and Scope of the Study

This study will be a grounded theory consideration of means to analyze trans-culturally
resonant images and themes, which may then be used to prepare an informational framework
for more effective presentation of what is happening in the international and local sports

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environment. The themes and images examined over the study will be gleaned from
international marketing video clips played in market research video clips played in
PowerPoint presentations with readers and distributors reactions measured through
observation, informal interviews and questionnaires.

Assumptions
This study is based on an emergent conviction that certain themes and images do indeed
resonate across the wide diversity of cultural dimensions found among the readers,
subsequent to may experience reading international sports as well as experiences of local
athletes who have international exposure. Furthermore, it is assumed that by identifying
themes and images which may resonate across ethics and cultures, journalists may be better
able to prepare articles and stories that will enhance the knowledge of international and local
sports as well as their social and medical perspectives.

Research Question
What sorts of themes and images might create trans-cultural resonance and dissonance within
sports fans comprised of diverse ethics and cultural backgrounds?

Social Significance
This study may serve to identify possible methods to enhance the sports exposure of
Myanmar sports fans as they read local sports journals. Beyond the academic and economic
benefits gained from enhanced value-added articles, readers will be able to have better
knowledge in sports and which sport is good for them. Moreover, primary and secondary

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students who play sports can learn from international sports programs may then progress to
play better and have skilled leadership in a conflicted global environment.

Study Delimitation
The themes and images referenced in this study necessarily derive from the creative mindsets
and incentives of local marketing and advertising. The industry produces audience appeals
covering in large part the panorama of human desires, needs and emotions. Yet the presented
images and themes are hardly representative of the great diversity of human experience in the
potential realms of communications, especially in the loftier dimensions of psychology and
intellect, heart and spirit.

Summary of Chapters
Chapter 1 provides a brief overview of the study’s purpose in the examination of potentially
trans-cultural themes and images resonating among diverse readers in Myanmar. Chapter 2
reviews the literature delineating the extent and intractability of cultural variations; as well as
the literature suggesting means to transcend cultural differences. Chapter 3 details the
research methodology used in the study, including observations and interviews of readers and
distributors to measure any instances of trans-cultural resonance to presented themes and
images.

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 Chapter 2: Literature Review

It is important to understand the nature of the market before entering into the market. Our
primary target market is middle age men in Myanmar. The secondary market is teenage boys.

Market Analysis
Marketing analysis needs to be done through appraisal and understanding of the present
situation. It includes definition of objectives of profit, turnover, product image, market share
and market position by segment. Currently, the sports journals are making average profit
margin of 40% and turnover is around 12 million Kyat per month. There is not much benefits
sports journals are providing to the readers other than information on sports especially
football. Premier Eleven and First Eleven are the most popular journals and they are holding
40% of the market share each.

Unique Sports Journal is expected to take about 20% of the market share in the first year and
then increased by 5% each year for three years and maintain the same level until further
strategy is formulated. To achieve those objectives, marketing strategies available to Unique
Sports Journal have to be evaluated and control methods which provide early warning should
be selected to check progress against the objectives and hence marketing strategies can be
adjusted.

Market analysis is very important in identifying gaps in the sport journal market where
consumer needs are not being satisfied and looking for opportunities that the organization
can benefit from, in terms of sales or development of new products or services. Customer
analysis can be done in segmentation, for example by geographically or demographically or
in psychographic or in behavior of the customers, motivation, such as brand preference,
change of preference), and unmet needs of the customers. In this research paper, researcher

ix
will perform market analysis and customer analysis to understand the market to be able to
meet the customer needs.

There are three types of marketing approaches, namely undifferentiated marketing,

differentiated marketing and niche or target marketing. Researcher will be using niche or
target marketing approach for the media product. Researcher will focus on 7Ps in the
marketing mix – product, price, place, promotion, people, process and physical evidence. In
terms of product, quality of the paper and articles and layout of the journal will be focused.
Unique Journals will practice market penetration method in entering the market and so the
price will be lower than the other sports journals. Journals will be distributed through the
journal sellers on the streets, book stores as well as online. There will be big billboards
hanging on Pyay Road, near Dagon Center and on Kabar Aye Pagoda Road, at Shwegondine
traffic light where there are big traffic jams every morning and evening at office hours.
Journalists will get trained in journalism at the American Center and the British Council from
time to time. Journals will be printed in-house which will be cheaper and more efficient than
outsourcing. Readers will enjoy full-color journals with international and local sport articles,
photos and news of international and local sport celebrities as well as medical aspect and
social aspects of sport.

Competitive Advantage
Michael Porter’s value chain analysis breaks the business’ activities into five primary and
four support activities to see if they give a cost advantage or quality advantage. Primary
activities include inbound logistics, operations, outbound logistics, marketing and sales and
after-sales services while secondary activities include firm infrastructure, technology
development, human resources development and procurement.

Paper and ink carriage, receiving, storage, inventory control and receiving articles will be
inbound logistics of Unique Sports Journal, while selecting, editing and printing articles will
be operations. Outbound logistics will include order fulfillment, transportation and

x
distribution management. Channel selection, advertising, promotion, selling, pricing and
retail management will be marketing and sales activities. As journal has only one-day
product life, there will not be after-sales service in our business.

In secondary activities, general management, finance and editorial are part of firm
infrastructure. Journal design and layout are technology development and recruitment,
development and salary adjustment are human resources development and procurement of
paper, ink, machines and computers are part of procurement.

Michael Porter said that it was vital that the linkages between the different elements of a
value chain are considered. Firstly, consistency is to be ensured and secondly, it may be that
through linking separate activities more effectively than competitors, a firm can gain a
competitive advantage.

To gain competitive advantage over rivals, Unique Sports Journal must perform value
creation functions at a lower cost than its rivals and/ or perform them in way that leads to
differentiation and a premium price. Each of the processes that make up the chain of activity
will be looked at in this research to be able to offer better value to the customers than
competitors do.

The following ten cost drivers will also be looked at in this research paper, namely;

1. Economies of scale
2. Learning
3. Capacity utilization
4. Linkages among activities
5. Interrelationships among business units
6. Degree of vertical integration
7. Timing of market entry
8. Firm’s policy of cost or differentiation
9. Geographic location
10. Institutional factors (regulation, union activity, taxes, etc.)

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Benchmarking
Benchmarking is the process of systematic comparison of a service, practice or process. Its
use is to provide a target for action in order to improve competitive position. It is important
for Unique Sports Journal to have targeted performance. Following are the main benefits of
benchmarking;

 Improved performance and added value

 Improved understanding of environmental pressures
 Improved competitive position
 A creative process of change
 A target to motivate and improve operations
 Increased rate of organizational learning

FIGURE – 2.1

Strategic Management Process

d
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n
sb
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Rro
tp
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S
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fyg
Iti

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There are five types of benchmarking; strategic benchmarking which involves considering
high-level aspects, historical benchmarking which involves seeking partners from within the
same organization, industrial benchmarking where organization consider their positions in
relation to performance characteristics of key products and services and organizations look to
benchmark with partners drawn from different business sectors or areas of activity to find
ways of improving similar functions or work processes, best-in-class benchmarking which
involves seeking outside organizations that are known to be best-in-class and partners are
sought from best practice organizations that perform similar work or deliver similar services,
focusing on improving operations and international benchmarking where partners are sought
from other countries because best practitioners are located elsewhere in the world. Unique
Sports Journal will practice industrial benchmarking since it is a new product.

Although benchmarking brings benefits to the organization, it at the same time has inherent
limitations. One crucial limitation is that managers may learn to direct attention at what gets
benchmarked rather than at what is important strategically. Benchmarking does not always
reveal the reasons for good/ poor performance and managers need to be aware that a
benchmarking exercise can appear to threaten staff where it appears that benchmarking is
designed to identify weaknesses in individual performance rather than how the process itself
can be improved. The more innovative companies are the less concerned with benchmarking
numbers than they are with focusing on the processes.

Emerging strategies
Researcher will practice emerging strategies of Henry Mintzberg where strategies are much
more likely to emerge rather than due to a deliberate planning process in media business and
one idea leads to another until a new pattern forms. Action has driven thinking and a new
strategy is emerged. There are five activities involved in strategic management:

1. Manage stability
2. Detect discontinuity

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 3. Know the business
4. Manage patterns
5. Reconcile change and continuity.

At the same time, bounded rationality need to be considered. In this case, time availability,
skills, habits and awareness of the partners are to be taken into account and all options have
to be considered, for example, compromise, satisfice or optimize.

Cultural model
Among the culture models, Miles and Snow’s model is referred. They described four
distinctive cultural types which will influence strategy: defender, prospector, analyzer and
reactor. The researcher sees the business will be run as prospectors where there is dominant
coalition of designers, scientists and entrepreneurs. Partners prefer aggressive, adventurous
strategies. Products and markets will be shifted frequently based on new application
technology or on thinking up innovative ways of doing businesses in a more traditional
market and structure and systems tend to be more open in order to be flexible.

However, analyzers reflect the business strategies most of the time which is final topology of
Miles and Snow. There is dominant coalition of both market oriented and process oriented
managers. The business will imitate the innovation of others and incorporate new ideas in a
more effective way, often taking control of standards. It also tends to use a strong hierarchy
to control costs. It has a project management superimposed to help ease the introduction of
new products and diversification.

xiv
xv
 Chapter 3: Research Methodology
This study will examine various readers’ responses to the articles, themes and images from
international sports around the world as well as local ones. This will be done in an attempt to
determine what images and themes – if any – may resonate across diverse nationalities and
cultures. The research methodology will incorporate a grounded theory approach seeking
ways to identify and analyze indigenous resonant messages and themes, which may be used
to augment an informational framework for more effective settings of an ideal sports journal.

A grounded theory research method places considerable onus on the researcher to present
and interpret the study from a more subjective perspective, which Cresswell (1998) observes
benefits from a “procedure that is thoroughly discussed and systematic,” as well as the
necessity that the “language and feel of the article are scientific and objective while, at the
same time, addressing a sensitive topic effusively”. Using this approach, the study will
include extensive narrative describing the cultural concepts and categories of cross-cultural
communication (relying on data from researchers such as Hofstede), a general background on
the readers (including data on ethnic, gender and age), as well as comprehensive treatment of
marketing messages, themes, images and so forth considered in the study. The research
conclusions will “construct interpretive narratives from their data and try to capture the
complexity of the phenomenon under study,” as is requisite of effective qualitative
researchers (Leedy & Ormrod, 2001)

Reliability and Validity

The study will incorporate a triangulated method of observation, interview and review of written
articles, fortified with the analytical skills of cultural competency, examining readers responses
to a series of marketing messages that may or may not contain transculturally resonant themes
and images. A group of participants for the study will include international and local sports fans
who buy sports journals in various townships in Yangon, Mandalay, Taunggyi and Myitkyina.

xvi
Reader participants will be observed as they respond to various marketing messages containing a
wide array of themes and images. The recorded observations and interviews will track the
participants’ reactions according to a detailed schematic of criteria, with the gathered data
collaborated and compared between the researcher and a qualified second observer. Abiding by
the policies of the Internal Review Board, the study research methods will be approved by the
administration of the fast-track MBA program of ABAC University and participating readers will
have provided their consent.

Data Collection
The sample in this study will include readers from different lifestyles, ranging from trishaw
driver to Managing Director of a large trading company. The observation and interview research
will involve the sports journal readers who buy the journals in the three week period of 14th
November 2011 to 4th December 2011. Direct quotes may be used from the readers gleaned
through informal discussions and written materials such as emails and questionnaires.

xvii
 MARKETING PLAN

Objectives

The initial objectives of the Unique Publishing are:

1. To publish two magazines – one about fashion and movie and one about the real stories –
every month, generating targeted profits of K 3 million each.
2. To sell an average of 20 ad pages per issue per magazine.
3. To have 150,000 subscribers at the end of 2012.
4. To have 12,000 one-year subscriptions sold for 2013 in December 2012.
5. To raise initial capital of K 15 million to ensure publication of Unique Sports Journal by
February 2012 along with marketing to grab people attention before publication.
6. To sell an average of 5 ad pages per issue
7. To publish two 16-page issues initially with press runs of 10,000 promotional copies each
in January 2012.
8. To publish 20-page issue at the third and forth issues with increased press runs of 15,000
promotional copies each.
9. To increase to 20,000 promotional copies in issues five and six.
10. To increase average ad page price from K 150,000 to K 180,000 by the end of the first
year.

Mission

Unique Sports Journal is for the sport fans at any level. The journal has a commitment to be a
platform to profile athletes who are representing sport vision in the marketplace and who can
both encourage and provide role models to other men and women. Unique Publishing,
through its journal, magazines, books and editorial content, will be a vessel to inform athletes
about athletic principles in everyday business and will encourage interaction among athletes
as business people. Our mission is to promote the concept of “community” in the workplace.

Critical Success Factors

The main factors which will bring success to Unique Sport Journal are:

 Follow-on marketing of four to six issues in the first year.

 Attaining targeted circulation levels.
 Carefully monitoring response rates of all media executions.

xviii
 Having quality editorial content and being creative and unique in each issue.
 Attaining targeted advertising sales revenues.
 Running at the lowest costs while spending on subscription marketing in the first year of
publication.
 Making all production and distribution dates in a timely fashion for each issue.

FIGURE – 3.1

Source - from Unique Publishing

Revenue and Profit Comparison

1,200,000,000

1,000,000,000
TOTAL REVENUE
800,000,000
PROFIT BEFORE INTEREST AND
TAX
600,000,000 NET PROFIT AFTER TAX

400,000,000

200,000,000

-
1 2 3

xix
xx
Company Summary
Unique Publishing began as a partnership among three medical doctors who are interested in
different sports, one golfer, one soccer player and one in tennis player. They are high school
buddies and they decided to start a business together as a press business since they know the
market well through their parents. After running press business for two years, they got an
idea to explore their interest and share it with the rest of the people in profitable way – that is
publishing a sport journal which is unique, with different sport activities and different
perspectives of sport – technological, social and of course medical perspectives.

They will publish the novels and other books from their press at discount who will have their
sport journal advertised in their books. One of the editors will write a script about sport
which will be broadcasted as a radio program on City FM, Shwe FM, Cherry FM and
Mandalay FM two days a week in each channel. It is expected that the radio show Unique
Sport Journal is performing will be a powerful promotional tool for the journal. Unique
Publishing will also have exclusive rights to “Unique Sport Journal” for all print media,
electronic media and possible sport activities devoted to all sport fans.

Start-up Summary

Unique Publishing is a partnership business and all the capital brought in is the partners’ own
money. Partners will not bring any other partners into their business. Partners will get a bank
loan of MMK 15,000,000 from Asia Green Development Bank from Yangon where they can
get a loan with an interest of 15% per annum. The amount would be sufficient to publish the
first new issue in 2012 and full-scale sampling and marketing of subscriptions. No further
capital injection would be needed unless they have growth strategies.

xxi
Ownership

Mr. Zaw Myint Htoo is the one of the founders of the Unique Publishing. He currently owns
40% of investment. The remaining 60% of the investment was shared by his two friends, Dr.
Nyi Nyi Latt and Dr. Swan Htet Aung.

Locations and Facilities

Unique Publishing is located on Strand Road at No. 235 in Yangon, commercial capital city
of Myanmar. Their contact is 09430102030 via phone and their fax number is 01537406.
Their office is fully equipped with press machine, laminate machine and functional. It is
expected that existing facilities will be sufficient for the first three years of the plan. All
business management and editorial functions of Unique Sports Journal will be able to
perform at the current location and with the current facilities. All printing, mailing,
warehousing and fulfillment are also to be done in house.

Products
The Unique Publishing will publish “Unique Sport Journal”. The journal is high gloss 20
pages, contemporary in look and appeal. Quality art and sporty content is the constant

xxii
destiny. The journal will be entertaining and newsworthy, thought-provoking and creative. It
will appeal to a broad sport readership. No journal like Unique Sport Journal is available in
the market in Myanmar today. Contemporary arts themes on the cover page will be different
from the other sport journals and make it unique.

Market Analysis Summary

After studying the market behavior, 99.99% of readers are men and soccer fans and they
want to know the results of the soccer games already played and likely results of the
upcoming games. They also want to know which players will be playing in the game and
which strategy they will be adopting. The journals in the market are pretty blend and cannot
differentiate much. However, Premier Eleven and First Eleven, holding 40% of market share,
are the market leaders in the current market.

The target market is broadly based on the athletes and sport fans at all levels in any
geographical area or in any life style. Media strategy and execution may vary by
geographical area. The journal will introduce traditional sports as well as ethnic festivals so
that readers from different culture will be able to learn from each other and the management
believes that they will be able to help the country by introducing each other culture.

Strategy and Implementation Summary

Main strategy is based on serving a clearly defined niche market well. By having an
identifiable market with available resources, the management of the Unique Publishing
believes that they can achieve market share they have aimed. Committed editors are a
passionate and loyal clientele. A world sport fans fancy will be introduced by Unique Sport
Journal. The initial issue published will attract all sport fans attention with media outreaches.
The journal will be advertised on the radio channels, television channels and papers one
month before the first issue is published. The objective is to reach and inform the target
market that things they’ve ever dreamed will be introduced by Unique Sport Journal. The
strategy is to combine sampling, direct marketing and build circulation through subscriptions
and on-street-journal-sellers as well as online distribution. Each channel has different margin
and the profit as a whole will be maximized so will be the potential reach of the journal.

Marketing Strategy

xxiii
Marketing strategy is all about free circulations and media-based. Journals will be distributed
to the potential subscribers for free of charge at certain locations. Usually, sport journal life
is only one day and people do not want to keep it or buy it on the next day and they will be
after another journal published on that day. However, in this case, Unique Sport Journal will
stand out differently. Free sample circulation will be 10,000 on the first and second issues,
15,000 on the third and forth and 20,000 on fifth and sixth.

There will be a press release for the journal launch at the Traders Hotel and it will cost MMK
1,500,000. There will be billboards hanging on two busy locations, called San Chaung and
Shwe Gone Dine junctions and it will cost about MMK 2,000,000. They will work with
Yangon City Development Council instead of with private companies for those billboards.

Management will develop strategies for each element of marketing mix.

Place or Distribution Strategy

Distribution will be through street-sellers whom journals will be sold at 50% of retail price.
Organizational sales will be distributed at 60% per issue. The outlets of Unique Publishing
will sell the journal at full retail price. Journal can be read online for free of charge until
management decides to change strategy.

Product Strategy

Unique Publishing will differentiate their journal from the other journals in the market with
paper quality and the quality of information and articles. Journal layout will also be different.
Full color on imported art papers will be used and photos and arts will be printed in high
resolution. Unique Sport Journal is not just a periodical but it gives knowledge and
collectible memory to the readers. One of the management members is an experienced editor
who also has related post-graduate diploma from United Kingdom and the management
believes that he will make Unique Sport Journal unique and able to deliver more than what
readers expect from the journal. It will be periodical which readers do not want to throw
away after reading or recycle.

Promotion Strategy

Management decided to have four billboards – one on Pyay Road, near Dagon Center and
one on Kabaraye Pagoda Road, at Shwegondine traffic light where there are big traffic jams

xxiv
everyday especially at rush hours. In addition to advertising, media exposure on radio
channels and public relations exposure will benefit journal circulation significantly.

Promotion strategy through organizations to their memberships includes a split of the first
year’s subscription revenue with the selling organizations. Complimentary journal will be
provided to the hotels where there will be a contract with the management to place the
journal at lobby area and to the beauty salons where male companions will be able to read the
journal while waiting for the ladies who are carrying out their beauty affairs.

Pricing Strategy

Although the management wants to enter the market by using lower price at first, the strategy
is changed to enter the market with premium pricing as the cost is high due to high quality
paper and ink will be used. Unique Sport Journal will use differentiated pricing and it will be
sold for MMK 500 per issue on the street or at the newsstand in Yangon.

 One-year subscription is MMK 20,000

 Two-year subscription is MMK 38,000

Journal will be sold for MMK 600 per issue at anywhere outside Yangon where there is
transportation cost which will be borne by Unique Publishing.

 One-year subscription is MMK 25,000

 Two-year subscription is MMK 46,000

Strategic Alliances

Strategic alliance with City FM, Shwe FM and Cherry FM where Unique Sport Journal will
have a talk show about sport twice a week at each channel will be used. In addition,
marketing associates will liaise with hotels, trains, airlines to buy Unique Sport Journal for
their passengers.

Sales Strategy

Unique Publishing will use aggressive sales strategies in getting the market share and their
targets in the first year:

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 20,000 one-year subscriptions

 10,000 one-year subscriptions through organizations

 5,000 two-year subscriptions.

By the end of the first year, it will be generating revenue of MMK 25 million and it will be
increased to MMK 30 million in the second year and MMK 45 million in the third year.

FIGURE – 3.2

Source – from Unique Publishing

Subscription Copies Sold

300,000

250,000

SUBSCRIPTION COPIES
200,000 SOLD - YANGON
SUBSCRIPTION COPIES
150,000 SOLD - OUTSIDE YANGON

100,000

50,000

-
1 2 3

Sales Forecast

Sales will be focused on subscription and commission of 50 Kyat per subscription sold will
be given to the sales representatives. 40% of subscriptions are projected to be from Yangon
and the rest is outside Yangon. Promotional copies of 150,000 will be distributed in the first
year and 12,000 each in the following two years. Price will be kept constant for the first three
years.

FIGURE – 3.3

Source – from Unique Publishing

xxvi
 Sales Comparison
500,000
450,000
400,000
350,000 SUBSCRIPTION COPIES SOLD
PROMO COPIES
300,000 STREET-SELLER COPIES
250,000 ORGANIZATIONAL SALE COPIES
RETAIL COPIES
200,000
150,000
100,000
50,000
-
1 2 3

TABLE – 3.1

Source – form Unique Publishing

SALES FORECAST

xxvii
 Y1 Y2 Y3

SUBSCRIPTION COPIES SOLD - YANGON

120,000 162,000 186,300
SUBSCRIPTION COPIES SOLD - OUTSIDE
YANGON 180,000 243,000 279,450
SUBSCRIPTION COPIES SOLD
300,000 405,000 465,750
PROMO COPIES
150,000 12,000 12,000
STREET-SELLER COPIES
52,000 65,000 74,750
ORGANIZATIONAL SALE COPIES
10,400 15,000 17,250
RETAIL COPIES
17,992 25,000 28,750
TOTAL COPIES
530,392 522,000 598,500

Milestones

Vital milestones are:

 Raising finance for start-up capital i.e., to get a bank loan from a local bank

xxviii
 Recruiting competent people with right skills, background and experience

 Launching Journal by February

 Develop subscription marketing programs with right people with right skills

 Achieving subscription goals

TABLE – 3.2

Source – from Unique Publishing

Milestones

Milestone Start Date End Date Budget Manager Department

Market Research 10/1/2011 10/31/2011 - Mr. Zaw Myint Htoo Management

Finish Business
11/1/2011 12/31/2011 100,000 Mr. Zaw Myint Htoo Management
Plan

Acquire Financing 12/1/2011 12/31/2011 200,000 Dr. Nyi Nyi Latt Management

Launching Event 2/20/2012 2/20/2012 1,500,000 Dr. Swan Htet Aung Management

Billboard 12/1/2011 2/20/2012 2,000,000 Dr. Swan Htet Aung Management

Marketing
12/1/2011 On-going 13,000,000 Dr. Nyi Nyi Latt Management
Programs

xxix
Plan vs. Actual Mr. Zaw Myint Htoo, Dr. Nyi Nyi Latt,
2/1/2012 11/8/2009 - Management
Review Dr. Swan Htet Aung

Hire Employees 12/1/2011 2/1/2012 150,000 Dr. Nyi Nyi Latt Management

Update Business
3/1/2012 3/31/2012 100,000 Mr. Zaw Myint Htoo Management
Plan

Totals 17,050,000

Management Summary
Unique Publishing has need for editorial, artistic, sales & marketing, and financial expertise
with production and fulfillment services.

Management Team

Mr. Zaw Myint Htoo, President & CEO

Mr. Zaw Myint Htoo founded and successfully grew a press called Unique Publishing over a
three year period. He is accomplished in both publishing and marketing. One of his largest
clients over the years has been Channel Journal.

Mr. Hla Oo, Chief Editor

Mr. Hla Oo (38) had an experience in editing for more than five years. In addition, he holds a
post-graduate diploma of journalism in UK.

Dr. Nyi Nyi Latt and Dr. Swan Htet Aung, Corporate Development

They both are medical doctors but they have strong interest in business and management.
They both has been studying ABE courses for two years and they have their own family
businesses running at the same time.

Ms. Aye Aye (30), Accountant

xxx
She has a B.Com. from University of Economics Yangon and experience of more than seven
years in accounting and auditing.

Management Team Gaps

Sales manager is to be hired as well as one freelance artist and two freelance sport
journalists.

Personnel Plan

The following table includes the personnel plan and projected salaries for all key people.

TABLE – 3.3

Source – from Unique Publishing

Y1 Y2 Y3

CHIEF EDITOR x 1
300,000 330,000.0 363,000.0
ACCOUNTANT x 1
200,000 220,000.0 242,000.0
ARTIST x 1
200,000 220,000.0 242,000.0
JOURNALIST x 3
100,000 110,000.0 121,000.0

1,000,000 1,100,000 1,210,000

Financial Plan
After initial capitalization growth can be financed largely through internal cash flow
provided subscription targets are met. In the event of a sales shortfall, marketing can be cut
back temporarily to preserve cash. Additional investment may be sought to re-accelerate
productive campaigns if growth demands more funding. This plan will generate cash as soon
as subscription base reaches critical mass.

xxxi
7.1 Important Assumptions

Subscriptions are assumed to be collected in advance. The following table illustrates the
financial assumptions used as the basis for this plan.

TABLE – 3.4

Source – from Unique Publishing

Y1 Y2 Y3

SUBSCRIPTION COPIES SOLD - YANGON

120,000 162,000 186,300
SUBSCRIPTION COPIES SOLD - OUTSIDE YANGON
180,000 243,000 279,450
SUBSCRIPTION COPIES SOLD
300,000 405,000 465,750
PROMO COPIES
150,000 12,000 12,000
STREET-SELLER COPIES
52,000 65,000 74,750
ORGANIZATIONAL SALE COPIES
10,400 15,000 17,250
RETAIL COPIES
17,992 25,000 28,750
TOTAL COPIES SOLD
530,392 522,000 598,500

Key Financial Indicators

The following chart represents changes in critical profit variables. Note that margins and
expenses are consistently controlled and net profit increases nicely. Inventory turns slow
down somewhat in the third year due to the burden of higher inventories for increasing book
sales.

FIGURE – 3.4

Source – from Unique Publishing

xxxii
 Key Financial Indicators
1,200,000,000

1,000,000,000

800,000,000

600,000,000

400,000,000

200,000,000

ES

X
G
E

TA

TA
IN
NU

NS
NT

AL

ER
PE
VE

RI

FT
CI
EX
RE

FP

ER

A
L
L

FIT
M
TA
O
TA

M
ST

TO

RO
TO

CO
CO

TP
NE

xxxiii
Projected Profit and Loss

Net income was expected to near MMK 358 million in year one and MMK 506 million and
MMK 578 million in year two and year three respectively. Net profit margins will improve as
subscriptions mature and marketing costs decrease.

FIGURE – 3.5

Source – from Unique Publishing

xxxiv
 PROFIT BEFORE INTEREST AND TAX
900,000,000
800,000,000
700,000,000
600,000,000
PROFIT BEFORE INTEREST
500,000,000 AND TAX
400,000,000
300,000,000
200,000,000
100,000,000
-
1 2 3

FIGURE – 3.6

xxxv
Source – from Unique Publishing

xxxvi
 NET PROFIT AFTER TAX
700,000,000

600,000,000

500,000,000

400,000,000 NET PROFIT AFTER TAX

300,000,000

200,000,000

100,000,000

-
1 2 3

PROJECTED PROFIT AND LOSS ACCOUNT

TABLE – 3.5

Source – from Unique Publishing

xxxvii
 Y1 Y2 Y3

SUBSCRIPTION COPIES REVENUE - YANGON

198,000,000 265,700,000 305,555,000
SUBSCRIPTION COPIES REVENUE - OUTSIDE YANGON
369,000,000 493,350,000 567,352,500
TOTAL SUBSCRIPTION REVENUE
567,000,000 759,050,000 872,907,500
STREET SELLER REVENUE
13,000,000 16,250,000 18,687,500
ORGANIZATIONAL SALE REVENUE
3,120,000 4,500,000 5,175,000
RETAIL REVENUE
8,996,000 12,500,000 14,375,000
TOTAL REVENUE FROM SALES
592,116,000 792,300,000 911,145,000
ADVERTISING REVENUE
39,000,000 46,800,000 46,800,000
TOTAL REVENUE
631,116,000 839,100,000 957,945,000

COST OF PRINTING
64,447,040 63,440,000 72,620,000
SET-UP COST
3,000,000 - -
CONSULTANCY FEE
1,200,000 500,000 500,000
STATIONERIES
800,000 868,000 941,780
STAFF SALARIES
12,000,000 15,200,000.0 20,203,333.3
COMMISSION ON SUBSCRIPTIONS
15,000,000 20,250,000 23,287,500
TRAINING EXPENSE
1,500,000 1,000,000 1,000,000
ADVERTISING AND MARKETING EXPENSE
13,000,000 12,500,000 10,000,000
LAUNCHING EXPENSE 0 0
1,500,000
BILLBOARD EXPENSE 2200000 2420000
2,000,000
TOTAL EXPENSES
119,647,040 115,958,000 130,972,613
PROFIT BEFORE INTEREST AND TAX
511,468,960 723,142,000 826,972,387
INTEREST EXPENSE

xxxviii
 2,250,000 2,250,000 2,250,000
PROFIT BEFORE TAX
509,218,960 720,892,000 824,722,387
COMMERCIAL TAX
153,440,688 216,942,600 248,091,716
NET PROFIT AFTER TAX
358,028,272 506,199,400 578,880,671
57% 60% 60%

Projected Cash Flow

The table below illustrates cash accumulation from the initial assumption of MMK 15
million capital infusion. At no point does the company run out of cash. We expect to buy
back the initial outside investment in year four.

TABLE – 3.6

Source – from Unique Publishing

The chart illustrates the critical cash flow in year one, two and three.

Y1 Y2 Y3

SUBSCRIPTION COPIES REVENUE - YANGON

236,000,000 271,400,000 312,110,000

xxxix
SUBSCRIPTION COPIES REVENUE - OUTSIDE YANGON
438,000,000 503,700,000 579,255,000
TOTAL SUBSCRIPTION REVENUE
674,000,000 775,100,000 891,365,000
STREET SELLER REVENUE
13,000,000 16,250,000 18,687,500
ORGANIZATIONAL SALE REVENUE
3,120,000 4,500,000 5,175,000
RETAIL REVENUE
8,996,000 12,500,000 14,375,000
TOTAL REVENUE FROM SALES
699,116,000 808,350,000 929,602,500
ADVERTISING REVENUE
39,000,000 46,800,000 46,800,000
TOTAL REVENUE
738,116,000 855,150,000 976,402,500

COST OF PRINTING
64,447,040 63,440,000 72,620,000
SET-UP COST
3,000,000 - -
CONSULTANCY FEE
1,200,000 500,000 500,000
STATIONERIES
800,000 868,000 941,780
STAFF SALARIES
12,000,000 15,200,000 20,203,333
COMPUTERS & INTERNET
2,600,000 - -
COMMISSION ON SUBSCRIPTIONS
15,000,000 20,250,000 23,287,500
TRAINING EXPENSE
1,500,000 1,000,000 1,000,000
ADVERTISING AND MARKETING EXPENSE
13,000,000 12,500,000 10,000,000
LAUNCHING EXPENSE
1,500,000 - -
BILLBOARD EXPENSE
2,000,000 2,200,000 2,420,000
TOTAL EXPENSES
117,047,040 115,958,000 130,972,613
NET CASH FLOW BEFORE INTEREST AND TAX
621,068,960 739,192,000 845,429,887
INTEREST EXPENSE
2,250,000 2,250,000 2,250,000
NET CASH FLOW BEFORE TAX
618,818,960 736,942,000 843,179,887

xl
COMMERCIAL TAX
153,440,688 216,942,600
NET CASH FLOW
618,818,960 583,501,312 626,237,287

xli
References
1. Michael Porter, Competitive Advantage: Creating and Sustaining Superior Performance, 1985.
2. Miles & Snow, http://free-books-online.org/management/organization-theory-and-
design/miles-and-snow%E2%80%99s-strategy-typology/
3. Henry Mintzberg, Patterns in Strategy Formation, Management Science, 1978
4. http://en.wikipedia.org/wiki/Strategy_dynamics
5. http://www.12manage.com/i_m.html

xlii