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Business plan ether 2009

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  • 1. Business Plan Evaluation of Ether‘s Print Possibilities Lisa Herpel mm091520 David Lechner mm091528 Sebastian Mark mm091531 Stefanie Scheucher Andrew Swann mm091551 Denise Zöhrer mm091559
  • 2. Ether Magazine –For You. By You. About You. 2 • Ether is a monthly online English magazine which deals with local Viennese and Austrian issues from an objective viewpoint • Content: Politics, Theatre, Music, Culture, Film and anything which influences the ex-pat community. • Format: A free downloadable PDF file www.ethermagazine.at • Work is voluntary and anyone can write for the magazine (if the topic impresses the editors) What is Ether Magazine?
  • 3. Ether Magazine –For You. By You. About You. 3 • Idea arose to service those in Vienna who were not familiar with the city and couldn‘t speak German • Launched in October 2006 by three friends, two based in London and one in Vienna • Target: To create „a monthly read which was a combination of a city magazine and a community magazine with an emphasis on arts.“ • Originally done just by Ex-pats. It has since widened ist horizons and there are now writers from all walks of life involved in the project. • Basic reports on life as an ex-pat have since developed into deep and involving journalism. History
  • 4. Ether Magazine –For You. By You. About You. 4 • Critical year for the magazine as all energies were focused on getting the magazine onto Print. • Search for a publisher started in October 2008, by september 2009 none had been found and all energy, enthusiasm and hope had been lost. • Common answers from the Publishing Houses: „ It is a great idea and has lots of potential but it is just too risky in todays market“ „Everything is there, it is perfect, but we just can‘t finance the project“ 2009: The Year Things Turned Sour
  • 5. Ether Magazine –For You. By You. About You. 5 Why? • Financial Crisis • Unpredictable future for print • Changing media climate But mainly: • Due to a lack of planning and analysis of what Ether actually is and why. i.e a clear and defined Business Plan…
  • 6. Ether Magazine –For You. By You. About You. 6 We will now continue with… • Steffi: Target groups and Management • Basti: Porter‘s 5 Forces • Denise: SWOT analysis • Lisa: Marketing Mix • David: Best Case, Worst Case Scenario
  • 7. Target groups and the company organisation structure Stefanie Scheucher mm091545
  • 8. Ether Magazine –For You. By You. About You. 8 Target group • People with english speaking knowledge – British, American and Austrian – Two-thirds speak English • Where do they live? – 72% in Vienna – 24% in a foreign country – 2% tourists and travellers • Gender – 60% female – 40% male
  • 9. Ether Magazine –For You. By You. About You. 9 Target group • Employment – Most of them are full and part-time employed – 15 % of the readers are students – Some are self-employed • Average age of the target group
  • 10. Ether Magazine –For You. By You. About You. 10 Target group Influencing Factors of the Buying Behaviour • Income – High rate of students - income less than 10.000 € a year – The amount of readers who earn more than 40.000 € a year is also pretty high • International orientation and the English language • Interest in current affairs and culture • Social lifestyle and interests – Go out with friends - into restaurants and bars – Visit museums, theatres and concerts – Interested in fashion, travelling and high-tech products
  • 11. Ether Magazine –For You. By You. About You. 11 • Entrepreneurship and Editor – Katie Binns is the manager and editor • Website – Administred by Andy Harris • Art and Design – Anja McCloskey is responsible for the desing and layout – She also writes articles – Mark Salesse supports Ms. McCloskey Management company organisation structure
  • 12. Ether Magazine –For You. By You. About You. 12 • Ether radio – Is no longer available, because the organisation of this show was under extreme pressure – Broadcast on the last Monday of the month – Rian van Spaandonk is a trained radio journalist and created the „Ether Radio“ • Contributors – About 35 volunteers write articles, stories and reports – Everyone is allowed to write Management company organisation structure
  • 13. Ether Magazine –For You. By You. About You. 13 • Other departments – It is not necessary to outsource other departments, because of the comprehensive knowledge of the team – Marketing and administration is undertaken by current volunteers – Accounting and financial controlling could be problematical • Expenses and insurance – All contributors are volunteers – no pay – They don’t have to be enrolled – no insurance Management company organisation structure
  • 14. Market Analysis on the Basis of Porter‘s 5 Forces Sebastian Mark mm091531
  • 15. Ether Magazine –For You. By You. About You. 15 • Defines attractiveness of the market • Basis for strategy Porter‘s Five Forces
  • 16. Ether Magazine –For You. By You. About You. 16 Competitive Rivalry within the Press Market Intensity is high if: • There are many competitors or few competitors with the same market share  Struggle for the market leadership Ether (low intensity of rivalry): • Unique concept as English city magazine  No direct competitors, no competitors with same market share • Possible indirect competitors: • „Biber“ (circulation : 50.000) • „Wien live“ (circulation : 73.000) • „Falter“ (circulation : 63.000)
  • 17. Ether Magazine –For You. By You. About You. 17 Threat of New Entrants • Threat is low if there are high barriers of entrance • Barriers in the press market: • High fixed costs • Unequal access to distribution channels Ether (low barriers): • Low costs because staff is working for free • Unequal access to distribution channels: „Pressegroßvertrieb Salzburg“ is the only independent wholesaler  Own distribution channel, because of the special target group
  • 18. Ether Magazine –For You. By You. About You. 18 Bargaining Power of Customers • Powerful buyer is able to force down prices, to demand better quality or more service • Bargaining power is high if: • Few buyers purchase the majority of the supplier’s products • The supplier’s products are not differentiated or standardized Ether (weak buyers): • No concentrated group of buyers • Highly differentiated (English version) • Independent of press wholesalers by establishing an own distribution channel
  • 19. Ether Magazine –For You. By You. About You. 19 Bargaining Power of Suppliers • Powerful supplier is able to charge higher prices, to limit quality or service • Bargaining power is high if: • A group of suppliers is more concentrated than the group of customers • The supplier’s products are highly differentiated Ether (weak suppliers): • Main suppliers are journalists (not concentrated) • Journalists are working for free (good opportunity to gain job experience) -> Their work is not very differentiated (many young journalists could replace them under the same conditions)
  • 20. Ether Magazine –For You. By You. About You. 20 Threat of Substitute Products • Substitute has the same function like the industry’s product • Threat of substitutes is high if: • The substitute offers an attractive price-performance ratio • The switching costs to the substitute for the customers are low Ether (small threat): • Possible substitutes: • English blogs of foreign inhabitants of Vienna • Problem: blogs have less journalists than Ether  Blogs don‘t offer the same variety of issues like Ether There are no blogs, which could be considered as a substitute at the moment
  • 21. Ether Magazine –For You. By You. About You. 21 Results of the analysis • The intensity of the the five forces is very low  Ether has a huge advantage towards their competitors because: • Highly differentiated • Low costs for staff • No dependence on the traditional distribution channels  Profitable Print version is possible
  • 22. SWOT analysis of Ether Denise Zöhrer mm091559
  • 23. Ether Magazine –For You. By You. About You. 23 SWOT Strengths - Weaknesses – Opportunities – Threats of/for a company or service • Helps identify these factors • Offers frame work for interpreting the market situation of a company SWOT analysis
  • 24. Ether Magazine –For You. By You. About You. 24 • Strengths : resources, skills and capabilities • Weaknesses : inadequacies of resources, skills or capabilities in relation to the competitors • Opportunities: favorable situations • Threats : developments that can affect the business in a negative way SWOT analysis
  • 25. Ether Magazine –For You. By You. About You. 25 SWOT analysis of Ether The SWOT-chart is built up in the following way:
  • 26. Ether Magazine –For You. By You. About You. 26 SWOT analysis of Ether
  • 27. Ether Magazine –For You. By You. About You. 27 SWOT analysis of Ether
  • 28. 28 SWOT analysis of Ether
  • 29. Ether Magazine –For You. By You. About You. 29 Outcome of the analysis The goal is to develop strategies to use available strengths to their advantages and avoid threats. → Make-over for online appearance → 78% of current readers would prefer print version und pay for it → Marketing activities have to be improved → Adverts + sponsorships = printing + distribution → Pool of employed and paid journalists → Community features
  • 30. Marketing Mix Lisa Herpel mm091520
  • 31. Ether Magazine –For You. By You. About You. 31 • Holds the key to achieving organizational goals • Consists of 4 Ps: – Product – Promotion – Place – Price • Developement of these four Ps responding to our goals and target group Marketing Mix
  • 32. Ether Magazine –For You. By You. About You. 32 Product Strategy • Content: adaption of the online version • Staff: need for a regular editorial department • Maintaining Homepage www.ethermagazine.at with special services – Pre-sale of tickets – Short news about upcoming events – Chats, blogs or an opportunity of feedback for readers • Corporate Identity and design of the printed product  professional designer
  • 33. Ether Magazine –For You. By You. About You. 33 Product Design Ligther and friendlier Stylish and trendier New slogan: Ether Magazine - For You. By You. About You.
  • 34. Ether Magazine –For You. By You. About You. 34 Promotion Strategy • Interests of target group  Spread flyer/ free first edition in resturants, bars and clubs • Campaign Ether via FM4 • Advertisments for Ether on official websites with relation to Vienna, preferable in English, e.g.: wien.info, wien.gv.at or vienna.at • Upcoming tool: application for smartphones
  • 35. Ether Magazine –For You. By You. About You. 35 Place • Main competence of the publisher • Printed ediition released every two weeks (Readers‘ Profile, European equivanlents) • Distribution of Ether in newsagents • All services are available online
  • 36. Ether Magazine –For You. By You. About You. 36 Price • Benchmark: price between free (e.g. „Budapest Life“) and two (e.g. „Time Out Amsterdam“) Euros • Target group: full-time employees with regular income • While launch gratis edition, then transformation into a magazine with costs • Price: between 1-2 € • Each edition: 50 to 60 pages including 12 to 18 pages advertisment
  • 37. Best Case – Worst Case – Probable Case David Lechner mm091528
  • 38. Ether Magazine –For You. By You. About You. 38 • Show possible consequences of the relaunch • Estimate development of different variables – number of readers – effect of marketing – sold ad pages • Accurate business plan = probable case very likely Best Case – Worst Case – Proable Case
  • 39. Ether Magazine –For You. By You. About You. 39 • Everything reaches it full potential • Marketing campaign successful • More people than targeted are reached • Ad space booked solid • First issue sold out • New writers • Other projects • Higher frequency Best Case
  • 40. Ether Magazine –For You. By You. About You. 40 • Marketing campaign is a failure • Newsagents do not keep „Ether“ • Low ad sales • Lower price • New promotion campaign • Other projects put on hold Worst Case
  • 41. Ether Magazine –For You. By You. About You. 41 • Marketing campaign reaches target group • Ad sales are solid • Larger newsagents keep “Ether” • Some new writers • Steady growth • New products like online community Probable Case
  • 42. Any Questions?
  • 43. Thank you!!