This document provides a business plan for a proposed free IT magazine called EDGE. The plan outlines the magazine's mission to deliver information, ideas, creativity, and exposure to customers in the IT field. It will have a wide range of content and tutorials at an affordable price point. The marketing strategy is to attract advertisers by targeting a wide range of IT-interested readers. Financial projections estimate initial losses that will be recouped once circulation reaches 50,000 copies per month and advertising sales of over $30,000 per issue are achieved. The operational plan details costs, locations, delivery, and a small initial staff.

1. Business Plan:
EDGE Free IT Magazine
Group 5
Rizwan Chand

2. EDGE - Agenda
1. Mission & Strategy
2. Product Description
3. Target Market
4. Marketing Strategies
5. Operational Plan
6. Management & Administration
7. Financial Projection & Funding
8. Implementation

3. 1. Mission & Strategy
Mission
Values
EDGE is a free megazine to deliver ideas, creativity and
complete coverage of information world. An effective
dynamic tool for advertiser to maximize exposure.
Vision
To become leading source of information in the field of
Information technology.
Deliver Information, Ideas, Creativity & exposure to customers
Objectives
Create the wealth of owners and maximized Venture Capitalist
investment in the company.
Strategies Stability (Pause & Proceed with Caution)
Goals Become leaders in Information Service Provider

4. 2.1 General Description
• A free of cost Magazine to provide Information
related to technology world.
• Provide comprehensive information and review
about latest technology products and services.
• Provide guide, tutorial and tips to use different
technology products (physical/software)
• Guide to social media online and how to be
secure online.
• Interesting gadgets, websites and games
available online and offline (free/paid).

5. 2.1 General Description con’t
• Letters to us
• News
• Social Media
• Ask the expert (PC, Advice, Software etc )
• Tutorials
• Best Buy
• Hints & Tips
• Interactive
• Practical (feature, expert, reader tips, reviews)
• Workshop
• Freebies (software/players/offers)

6. 2.2 Key Features
• Wide range of content/topics
• Easy to understand extensive tutorials/guides
• Lowest subscription charges
• Readers can contribute and interact
• Low price advertising space

7. 2.3 Main Benefits
• Easy to understand for beginner
• Provide information to be smart online and
offline use
• Provide guide to purchase software/computers
• Easy to subscribe
• Available wide range of places (init.
Birmingham)
•

8. 2.4 Pricing Plan
Price £0.00 - Free of Cost
Subscription Charges £0.42p per issue
Free of cost first 6 issues and £5 every 6 months (12 issues, 42p per issue)

9. 2.5 Competitors' Offerings
• Direct Competitor
▫ All Consumer Magazine
• Indirect Competitor
▫ Online Magazine

10. 2.6 Competitive Assessment
• Target to professionals
• Not enough marketing
• Very technical for normal user
• Not much interaction
• Focused on web technology

11. 3.1 General Background
• Audit Bureau of Circulations Report for 2009
• Total UK magazine circulation during the period was
75,367,795 - a drop of just under 2,000 compared to the
second half of 2008
• Out of the 112 publishing sectors identified by ABC, only
29 managed a positive year-on-year circulation growth;
eight recorded a double-digit growth.
• The PPA calculates that more than one billion magazines
were sold in 2009 and that consumer paid-for
circulation fell by 1.3 per cent in the second half.

12. 3.2 Size, Segments & Trends
• Total sales (and year-on-year percentage change) in key sectors in the
last six months of 2009:
• Men's Lifestyle - 2,312,709 (-4.4%)
• Music: Rock - 570,349 (-7.0%)
• News & Current Affairs: Business & Finance - 1,724,966 (5.7%)
• News & Current Affairs: Domestic - 557,513 (3.4%)
• News & Current Affairs: International - 829,273 (0.0%)
• News & Current Affairs: Science - 151,324 (-9.2%)
• TV Listings: Radio & TV Guides - 4,845,410 (-5.8%)
• Women's Interests: Women's Lifestyle/Fashion - 6,580,758 (4.7%)
• Women's Interests: Women's Weeklies - 8,612,830 (2.9%)
• Paid-for circulation among the top 100 titles has dropped 17 per cent in the
last decade. And that's a trend that's only going in one direction.
• But is still space for new launches: Conde Nast's Wired is on
course to reach its target of a 50,000 average per-issue sale by its first
anniversary in May - it recorded an average sale of 48,275 in the last half of
2009.

13. 3.3 Review of Competition
• 83 Titles in UK
• Main Competitor
▫ PC Pro
▫ User Active
▫ Web User
▫ Micro Mart
• Content
▫ Mainly targeting IT professionals or readers familiar with
technology world and language
• Price
▫ Pricing ranges from £1 - £3
▫ Subscription charges around 6p first 6 months and then
almost the same price.

14. 3.4 Customers/Users
• Advertiser
▫ Advertisers are the main customer
▫ Wide range of advertiser market
▫ Product Brands
 Dell, HP, Apple, Xerox, Sony, Samsung etc
▫ Service Provider
 Hosting & Domain, Design Agency, Web & Desktop
Application Developers
▫ Online Website
 Online retailers and service provider

15. 3.5 Medium-Term Projections
• Birmingham Local readers
▫ (Café’s, Train stations and local retailers)
• UK universities and higher education institute
▫ (166 universities and 22 local colleges & learning
centers)
• IT service providers
 (25,000 IT service providers throughout UK)
• Future Projections
▫ Expanding to London local readers
▫ Other products retail stores
▫ Increasing subscription to 30,000

16. 3.6 The Market Condition:
Competitor Analysis
IT Magazine for sell Free magazines/ newspapers
To provide the updated IT News and
product review
To provide local news and eventsObjectives
Differentiation Cost LeadershipStrategy
Key Strengths:
-Have know how of IT Magazine
-Knowledgeable in IT field columnists
and staffs
-Strong connections within IT industry
Key Weaknesses:
- The limited number of readers since
people tend to research online
Key Strengths:
-Accessibility
-High circulation (since it’s free)
-Attractive to various ad buyers
-Closely bond with local community
Key Weaknesses:
-Difficult to identify the readers and the
ad buyers
Resources &
Capabilities
No reaction since we’re not the direct competitor. And, there’re the large number
of advertisers. The competitor’s source of revenue might not be effected.
Prediction

17. 4.1 Key Marketing Strategies
• Key marketing strategies
Attracting advertisers based on high distributions and
targeting on wide range of readers which are interested
in any IT and computer tech
• Marketing
- Targeting: All companies which related to IT and
computers
- Pricing : Setting relatively cheaper ad space than paid
magazines which have big circulation
- Products : Contents which covered wide range readers
from beginners to skilled readers

18. 4.2 Sales Forecasts
• Ad space prices and estimated sales
EDGE
Distribution 50,000 copies
Total 50 pages
Ad 15 pages (30% of whole magazine)
Main Ad (per issue) no. of ad page price sales
front cover - - 2,200 2,200
inside front cover - - 2,400 2,400
inside back cover - - 2,300 2,300
outside back cover - - 2,500 2,500
full 4 4 1,000 4,000
1/2 page 12 6 600 7,200
1/4 page 20 5 350 7,000
15 27,600
Small Ad (per issue) no. of ad page price sales
small ad page 24 1 150 3,600
Sales (per issue) 31,200
Sales (per month) 62,400

19. 5.1 Operational Plan
Printing House
Delivery
15,000 GBP
Office Location
Liberty Place – Sheepcote Street, Birmingham, B16 8AE
(1,333 GBP per year)
1. Must deliver from printing house to magazine stands.
Lease 2 trucks for 400 pounds per month, 12 months contract
2. Post to University Libraries across UK (50 P delivery fee TBC)
Magazine
stands in
Birmingham
102 physical Locations in Birmingham & mail to other city
-161 Colleges & Universities in whole uk
-21 Colleges & Universities
-20 Train stations
-1 Birmingham Central Library
-20 Learn Direct schools
-18 Internet Café
-9 Currys stores
-30 Chained coffee shop
- 6 Caffe Nero/9 Starbucks/ 10 Costa/
5 Pret A Manager

20. 5.2 Operating Cost Projection
Item Type First Month Cost (GBP) Monthly Cost (GBP)
Office Space Rental Operating Expense 111 111
Office Expense Operating Expense 1,000 1,000
Office Suppliers Operating Expense 316 290
Delivery Cost Cost of Sales 800 800
Printing Cost Cost of Sales 15,000 15,000
Megazine stand Cost of Sales 15,000
Total 32,227 17,201

21. 6. Management & Administration:
Annual Pay roll
Position Monthly Salary Number Total
Editor 3,167 -
In-house writer 1,583 -
Freelance writer 6000
graphic designer 917 -
web developer 1,500 -
Total Editorial Department 6000
Managers
- Operation 2,500 -
- Sales & Marketing 2,500 -
- HR 2,500 -
- Business Development 2,500 -
Staffs 1,250 -
Total Other Department -

22. 7. Financial Projection & FundingFirst 6 months revenue
Jan Feb Mar Apr May Jun
Sales 62,400 62,400 62,400 62,400 62,400 62,400
Cost of sales *1 32,400 32,400 32,400 32,400 32,400 32,400
Gross Margin 30,000 30,000 30,000 30,000 30,000 30,000
Total Operating Expense *2 32,211 20,711 20,711 20,711 20,711 20,711
Income from Operation -2,211 9,289 9,289 9,289 9,289 9,289
Other income, interest *3 0 0 0 0 0 0
Net Income before tax -2,211 9,289 9,289 9,289 9,289 9,289
Tax (30%) 0 2,787 2,787 2,787 2,787 2,787
Net Income -2,211 6,502 6,502 6,502 6,502 6,502
*1: printing cost, salary of Editorial department (6 staffs+2 editors??)
*2: All other cost that's not cost of sales
*3: We will have to borrow money from bank. The interest rate per month is 0.88% (Lloyds TSb)
borrowing 1,000GBP rate 0.88% Payback 1year

23. First Year
Pre-launch
▫ 1 month for setup and hiring
▫ 2 month publication starts
Launch
▫ Streamline next issue
▫ Marketing & Subscriber
Sub-sequent Year
Expand to other cities (London, Manchester)
Increase Quality of Content & No. of Pages
8. Implementation

24. Thank you
Group 5