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Launch of A Tabloid
Launch of A Tabloid
Demographics
Target Audience Age 15- 30 years We are targeting both the gender for You and Youth
Age-wise Distribution of Population
0 -15 years 15 - 30 years 8% 22% 30- 60 years 12% 60 + years
58%
Market Survey
Demographics -Area
We will first launch the tabloid in Mumbai and after retrieving the cost incurred and additional 25-30 marginal profit in estimated time duration of one year, we will propose the plan the launching in other metros also. As per Census 2011, the population of Mumbai is approx. 92,26,956. Out of which we have a pair of eye balls around 53,51,055 in our target zone.
Prime Competitors
Times of India groups Mumbai Mirror- 31.4 lacs Hindustan Times- 11.4 lacs Indian Express - 3.5 lacs Mid Day- 2 lacs These are a few English newspaper that hold the major chunk of circulation.
Source- http://www.indiaclassifieds.com/printmedia_circulation.asp
Pricing Strategy
The cost of a newspaper is determined by following sources:
- Production cost - Administration & Management cost - Marketing cost - Distribution Cost
Production cost
Expenses Estimated Cost
1,20,00,000 90,00,000 9,00,000
Machinery and other equipments Paper and ink (For 6 months) {360 * 20000}+{360*5500} Cost of premises/Rent of premises(around 5000 sq feet for 6 months)
Labor cost (for 6 months)
3,00,000
Misc expenses
Total
1,00,000
2,23,00,000
Estimated Cost
5,000
3,00,000 2,70,000 5,00,000 30,000 50,000 2,40,000 35,000
Total
14,30,000
*The staff compromises of 1 Chief editor, 3-4 Sub editors, 5-6 reporters/ writers, 2-3 Photographers, 2 office boy, 2 accountants, 2 designers/technicians
Marketing Strategy
We will run a campaign for promoting our newspaper by going to various colleges and Junior colleges, offices and BPOs and distributing free copies We will also selling free copies to students/ working people near their workplaces Conducting seminars about You and Youth and other Youth campaign and presenting our newspaper as a youth symbol for enthusiasm and zeal. Promoting our newspaper through various youth organizations like Yuva Bharati, Yuva chetna etc Through banners , hoardings and advertising by different places like local trains Conducting social campaign like a marathon or a cycle rallies Designing a good advertising campaign by some agency. Promoting You and youth through various Social networking sites Organizing an event for promotion and launch of the newspaper
Marketing Cost
Advertising campaign -50,00,000 Event -50,00,000 Social campaigns and seminar - 25,00,000 Total -1,25,00,000(approx)
Distribution Strategy
Special privileges and additional discounts to be given to distributing agents taking more copies. Gifts and incentives to be given to hawkers who derives more sale. Tie up with various local bookstores and library along with big names like Odyssey, Crossword, I read etc. Effective circulation system to be functioned where time quotient is involved.
Distribution Cost
Expenses
Wages Overhead expenses Gifts and prizes Branding with bookstores 50,000 1,50,000 1,50,000
Estimated Cost
18,00,000
Agents commission
Additional incentives to hawkers
50,000
50,000
Total
22,50,000
Budget
Expenses
Production Cost
Management & Administration Cost Marketing Cost Distribution Cost
Cost
2,23,00,000
14,30,000 1,25,00,000 22,50,000
Total
3,74,30,000
Sources of Revenue
Personal Funds Bank Loan Circulation Sponsorship of various product Revenue from Advertisements With expected circulation we are expecting around atleast 60000-70000 copies to sell that will give us estimated Rs 3,00,000- 3,50,000
Advertisement Cost
Size
Full front page adv Half front page adv 30,000 20,000
Cost
250 150
800
We will offer various packages to avail bulk advertisement offer. We will give 15% discounts for 3 advertisements, 20 % for 5 advertisements and 30 % for more than 8 advertisements
Sales Forecast
Chart Title
100 80 60 40 20 0
circulation complimentarycopy
sponsorships
Profit
In the first year we might not forecast about profit as we are still making market for us. We need to have working capital for atleast 6 months to survive in the race. Working capital comprises of administrative cost, production cost(excluding the purchase of machinery), management and distribution cost.
Break-even Point
The targeted circulation for 1 year is 1,00,000 readers After 1 year our aim will be 1,50,000 readers The rates of advertisement will increase with the accentuated circulatory figures and goodwill of the company We aim to reduce the cost of production by strategic planning and techniques in coming year. We plan to reach our break even point in 3 -4 years.
Submitted By
Shilpa Dubey J-02
Thank You