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Marketing Plan For Magazines
Marketing Plan For Magazines
TRAVEL MAGAZINE
SPIRIT OF LIVING
Term Paper of Marketing Management Paper Code: MGT 514
INDEX
Acknowledgement Motive of Term Paper Introduction Development
Is NPD the same as innovation? Introduction Magazines STEPS IN NEW PRODUCT DEVELOPMENT SWOT Aanalysis of Spirit of Living Magazine NPD Is Difficult to Manage
to
New
Product
Acknowledgment
Through my gratitude towards my supporters yet I like to add a few hearts full for the people
who were part of this project in numerous ways. People who gave understanding support right the project ideas were conceived.
First I want to thank to Mr. Rajan Girdhar, Lecturer Marketing Management, Lovely Professional University, Phagwara for assigning this term paper & I also want to give hands full gratitude to her for her help & guidance. I would like to thank all the faculty of Lovely Business School for having faith in me & for their kind inspirations & helping mw whenever asked.
Last but not least, I expand my heartiest gratefulness all people who have been directly or indirectly involved in this project & have given me their best wishes & all help that I needed for the completion of the term paper.
Varun Puri
PREFACE
This project is undertaken to fulfill the project work component of the M.B.A program in 1st Semester. My project guide from L.P.U is Prof. Rajan Girdhar. This project reveals the activities undertaken by a new firm in introducing a product Jeans into the market with special references to the activities like Product Development, Launching of Campaign, Product Pricing, Promotion and Advertisement of the product and finally its evaluation and control
But lets start with a definition. Our definition of NPD starts with the identification of an opportunity in the market (somebody needs a product to do this) and ends with the successful launch of the product. In between are many activities to define the requirements, develop and test a product concept, fully define and develop the product, source for suppliers involved, plan the manufacturing and supply chain, and prepare marketing programs. On top of that, its about defining the product strategy, managing the overall product program, and monitoring all the projects and activities needed to drive the NPD process.
You only get a position in the future by investing,creating something new, and staying ahead of the competition. So its simple: invest or die. Craig Barrett, CEO, Intel Business 2.0, January/February 2004
In order for a product launch to be successful, many different factors have to come together in just the right way. If one is wrong, its likely the whole launch will fail. For example:
The product has to meet the customers requirements it has to do the job. Increasingly, it has to meet the customers aspirations it has to feel right. The manufacturers reputation for quality, reliability, and service may also be important. And, of course, it has to be available at the right time and the right price. The challenge of NPD is to make sure that all of these things are achieved all of the time.
Introduction
Magazines,
periodicals, glossies or serials are publications, generally published on a regular schedule, containing a variety of articles, generally financed by advertising, by a purchase price, by pre-paid magazine subscriptions, or all three.
The various elements that contribute to the production of magazines vary wildly. Core elements such as publishing schedules, formats and target audiences are seemingly infinitely variable. Typically, magazines which focus primarily on current events, such as Newsweek or Entertainment Weekly, are published weekly or biweekly.
IDEA GENERATION
SCREEENING
BUSINESS ANALYSIS
PRODUCT DEVELOPMENT
PRODUCT DEVELOPMENT
PRODUCT PRICING
Step 1
Idea Generation
The first vital step is to generate ideas for new products are from new ideas. Product ideas
generation means fusion of perceived need with the recognition of a technical opportunity. That is the perceived need may be new or old apparent or latent-currently partly fulfilled or unfulfilled. Though the basic input for the development new products are ideas, all ideas do not become products. The real difficulty is not in gathering these ideas but in identifying the GOODones. Unfortunately, good ideas are generally as plentiful as is often.
B.External Sources: External sources are those sources of product generating ideas that signify outside sources
1.Competitors: We must establish a formal procedure for monitoring the new product activites of its competitors.By the time a competitor has a new product, it is pretty late to be trying to do anything about it.Good inferences about competitive product development can be made on the basis of indirect evidence gained from salesmen, suppliers, resellers and even customers.Hiring away competitors employees, disassembly and analysis of competitors product are quite common though legally challenged. 3.Customers: we have to pay more and more attention to customers who constitute the focal point of mew products.consumers frequently generate new product ideas, or at least relly information regarding problems that new and improved products would help to solve. 4.Resellers: Resellers are component part of firms marketing system.they to have a stake in the manufacturers new product development activity.
Step 2
magazine we have to screen our idea that relies much heavily on managerial judgment and experience. They make the sound ideas that promise commercial and technology opportunity. So keeping in mind the company objectives as well as resources I have chosen travel & living magazine which will be named Spirit of Living. The magazine Spirit Level will specialize in leisure travel & in addition it will include regular articles on Yoga exercises & its benefits and will als often features articles written by novelists, poets, artists, designers and non-travel journalists. It will be known for its travel photography. Other features include the SPIRIT OF LIVING 500, a list of the world's top 500 hotels, and Favorite Cities of Indias & other Countries. The magazine's website, SpiritofLiving.com will publishes original, web-only content and destination guides.
Step 3
Demand analysisThe first step will be to estimate the demand for the travel magazines. Demand for these types of magazines is moreover balanced in men & women.
Cost analysisA complete cost appraisal is necessary as a part of business analysis. It is rather difficult to anticipate all the cost that will be involved in a product since the idea of new magazine had not entered the development stage. However its generally possible to estimate a range of cost that will be incurred. Both manufacturing and marketing cost are to be included. Market cost includes all the advertisement expenses, distribution cost, and concession to consumers on subscription.
Competitive and industry analysis: Porter has given a five force model for industry analysis and its components are:
1. A larger number of firms increase rivalry because more firms must compete for the same customers and resources. The rivalry intensifies if the firms have similar market share, leading to a struggle for market leadership. So many travel magazines are there in the market which can give a tough competition to the Spirit of Living Magazine. Like there is travel plus of India today, travel & leisure etc. 2. Low switching costs increases rivalry. When a customer can freely switch from one product to another there is a greater struggle to capture customers. If other magazine decrease the cost of its product then it became difficult to fetch the customers again.
Threat of Substitutes In Porter's model, substitute products refer to products in other industries. To the economist, a threat of substitutes exists when a product's demand is affected by the price change of a substitute product. A close substitute product constrains the ability of firms in an industry to raise prices. If any other business magazine low down the prices of its products then it will affect the demand for business today magazine.
Buyer Power The power of buyers is the impact that customers have on a producing industry. Buyers are powerful if they purchase a significant proportion of output i.e. business today magazine.
Supplier Power A producing industry requires raw materials - labor, components, and other supplies. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials used to create products. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price to capture some of the industry's profits. If the suppliers of information tend to charge high price from the producing industry it will affect the production and ultimately affect the customers.
Barriers to Entry / Threat of Entry It is not only incumbent rivals that pose a threat to firms in an industry; the possibility that new firms may enter the industry also affects competition. If any firm enters in competition with business today company there raises some threats to the company e.g. low down sales.
Step 4
Product Development
Until the product development stage, the existence of the product is entirely theoretical.
During the development stage, the product idea is converted into tangible physical product. So now we come to process of how to print the magazine & publish it.
The first step is selecting the paper on which it will be printed. Most magazines produced on a commercial scale are printed using a web offset process. The magazine is printed in sections, typically of 16 pages, which may be black-and-white, be in full colour, or use spot colour. These sections are then bound, either by stapling them within a soft cover in a process sometimes referred to as 'saddle-stitching', or by gluing them together to form a spine, a process often called 'perfect-binding'
Material to Be Included
In this stage various type of material is selected, that we want to publish in our magazine. Our magazine will include following features
Travel & Lisure Articles Yoga exercises & its benefits Articles written by Novelists, Poets, Artists, Designers and Non-Travel journalists. Travel photography. SPIRIT OF LIVING 500, a list of the world's top 500 hotels, and Favorite Cities of Indias & other Countries. The magazine's website, SpiritofLiving.com will publishes original, web-only content and destination guides.
Step 5
We can also offer special low introductory prices or special discounts on subscriptions & we can offer more discount on subscribing for more than one year.
Step 6
Product Pricing
Product pricing The next step in new product development is product pricing. Now we have to decide the price of our product i.e. Spirit of Living. The price we charge our customers or clients will have a direct effect on the success of our business. All prices must cover costs and profits. The most effective way to lower prices is to lower costs. Review prices frequently to assure that they reflect the dynamics of cost, market demand, response to the competition, and profit objectives. Prices must be established to assure sales. Before setting a price for our product, we have to know the costs of running your business. If the price for our product or service doesn't cover costs, your cash flow will be cumulatively negative, you'll exhaust your financial resources, and your business will ultimately fail .In pricing the other factor that is also important is price of the competitors in the market.So we have to set the price for the handloom garments after having look at the price of the competitors who are producing the same product.
Here in our case we will have to charge a very competitive price because there are large no. of giant groupslike India Today, the Hindu Group, Express Group etc. these groups are one of the oldest magazine publishers & they can fall their price tto weaken us
Step 7