2. Introduction
SPG Media’s print division experiences a high degree of fluctuation in
workload throughout the year due to a high number of annuals and bi-
annuals published during two intensive periods each year. This has led to a
clear objective:
To leverage current capabilities, assets and overheads and gain a new
stream of income for SPG Media Ltd.
3. Current workflows
Publish Publish
Personnel Pay*(approx) Capacity Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Product
Managers 0%
Content
Managers £23-25K yr 33%
Researchers £17-19K yr 0%
Sales Variable 0%
Customer
Services £14-16K yr 33%
Desk-Editors £20K yr 100%
Ad Processing £16K yr 80%
Design £20-23K yr 100%
Production £20K yr 40%
Full Capacity
Variable/building
capacity
Spare Capacity
Pre-production staff including, desk editors, design and production, have the most capacity spare capacity while commercial
and service teams have a steadier workload.
4. 2 Core products ready to enter market
1. Print and Distribution of standard bound publications at economical
prices
2. Pre-production, design, layout and sub-editing services.
5. Profitable jobs
Profitable jobs
• High print runs distributed to multiple addresses 20% margin
• Medium to high design, sub-editing and pre-production requirements Recharge on existing overheads.
The ideal job:
High print runs distributed to multiple worldwide addresses with heavy requirement for design and sub-editing.
All to be produced at the quietest times of year.
Jobs to avoid
Small print runs without design or editorial.
Jobs involving production methods outside the existing core competencies, e.g. Creative paper construction
6. Target Market
• UK based SMEs in technical, engineering and other print intensive markets.
• Associations, organisations and small publishing companies in current
markets looking to outsource.
7. Print and distribution
• Print and distribution are often bought and
sold on the basis of price.
• Of 110 companies in the Construction,
Healthcare and Hospitality markets, all are
producing catalogues and brochures and 10%
are printing a customer magazine.
• Only 20 of these companies are outsourcing
any print to Europe or Asia.
• Print runs of 5K to 100K represented around
25-30% of this market.
• SPG have a cost effective supplier base for
publications, catalogues and brochures on
similar print runs.
110
41
10
91
38
97
16
40 34
0
20
40
60
80
100
120
Catalogues
and
brochures
Delegate
packs
Loyalty
magazines
Presentation
Materials]
Staff
Handbooks
Direct
marketing
materials
Instruction
manuals
Flyers
Internal
communication
No.
of
companies
110 companies were asked which products they produce most.
35% of Production runs were between 5K and 100K
The same companies were asked where they print there materials.
110
8 15
5
0
20
40
60
80
100
120
UK USA Europe Far East
and Asia
Number
of
Companies
8. Pre-production, design, layout and sub-editing
Design is the second most outsourced publishing service after print and distribution.
30% of companies approached across various sectors including construction expressed an interest in economical pre-production
services:
58 Associations in the construction industry were asked if they produced a printed publication.
48 produce printed publications, 15 of which are circulated to 5K readers of more.
Design, editorial and other pre-production services are not bought on price alone, trust in a working relationship has been sited
as the main reason for being disinterested in services offered on the basis of price alone.
Which publishing services do you outsource?
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Question:
How do SPG gain the strength of relationships
needed in order to sell design and editorial
services?
9. 3 Phase Sales and Marketing Strategy
3. Specific focus on one sector: Focus on big contracts involving all services.
2. Develop publishing opportunities: Leverage pre-production overheads
1. Print and Distribution sales Publications, brochures and catalogues sales:
Gain a stream of revenue as fast as possible.
Foundation: General marketing and resources
Create effective general marketing
and put resources in place
10. Create Marketing and Resources
Foundations: General marketing and resources
Web
E-bulletin & sales ptich
PDF presentation
Print advertising into SPG publications.
Direct mail
Service profiled at all SPG Events
PR in trade press
Put resources in place.
Set-up effective customer hospitality procedures and facilities
11. Phase 2 Sales and Marketing Strategy
2. Print and Distribution Sales
Publications + brochures/ catalogues : Gain a stream of revenue as
fast as possible.
Research and reach market via direct mail, telephone, internet and leads
from trade shows.
Based on selling 41 print jobs at an average of 12K each at
20% margin.
£492K Turnover at margin of 20%
Gross contribution before direct overheads is £82K
Print and distribution costs at £410K
12. Phase 3 Sales and Marketing Strategy
3. Develop publishing opportunities
Leverage pre-production overheads
Meet companies face to face by visiting London trade shows and SPG events
Target companies, publishers, associations and organisations
Work across several market sectors.
Develop portfolio of work, expertise and market knowledge.
140K Gross contribution before direct overheads on recharge values
over 20 jobs (7K each).
13. Phase 4 Sales and Marketing Strategy
4. Specific focus on one sector: Focus on big contracts involving all services.
Time invested in relationships and market knowledge will establish ground for long term partnerships
and bigger opportunities.
Gain a solid set of clients and relationships in a specific market.
Gain recognition as a central player within the chosen market industry.
Create sophisticated, industry-focused marketing materials.
To focus on growth on following year
In first year, aim to win £30K on recharge values + £100K in Print & Distribution at 20% margin
Gross contribution before direct overheads £50K.
3 jobs
14. Target growth in first year
0
20
40
60
80
100
120
140
160
1 2 3 4 5 6 7 8 9 10 11 12
Month
Gross
contribution
before
subtracting
direct
overheads
Print & Distribution (Medium Jobs)
Editorial and Design (Medium jobs)
Editorial and Design (Large jobs)
Print & Distribution (Large Jobs)
Note: In the second year larger jobs could be expected to exceed the contributions from other jobs
15. Revenue, cost and contribution
Year One
• Based on reaching targets laid out in the sales strategy and incremental monthly targets until they are
reached.
Total Turnover £762
________________________________________________________________________
Direct Costs £490
Print and Distribution
Direct Overheads £122
Personnel and Freelancers
Expenses
Tools
Marketing
_____________________________________________________________________________________
Contribution to Overheads £150
16. SWOT Analysis
Strengths
Most overheads are covered.
• Cost effective existing supplier base.
• Publishing process already in operation.
Low risk, little investment involved.
Can offer entire service from conception to distribution.
Existing partners, editorial boards, consulting editors and publications give the
new venture credibility in the market.
Weaknesses
Fluctuating costs due to variation in current workload.
Few if any strong relationships with clients already exist.
Little experience of contract publishing within SPG.
Operation not set up to meet and service customers on the premises.
Market reputation of Stirling Publishing
Time taken to get a quote plus reliance on one very busy person.
Opportunities
Can be competitive in a market where high volumes of printed catalogues and
brochures are printed in the UK.
A ‘foot in the door’ gained by offering competitive print and distribution provides
opportunity to sell pre-production services.
Recharge rates on existing overheads represent extra profit to the group.
Cross – selling opportunities - future opportunity to develop an all-round
consultative marketing service
Entering a new market with diverse range of serviceable requirements.
Leverage existing copyrighted content.
English speaking company in a worldwide market.
Threats
Diminishing print requirement in favour of electronic media.
Existing production resources may need to be downscaled if advertising sales
in print diminish further, threatening price orientated proposition reliant on
leveraging existing overheads.
Competition. The most direct competitors are likely to be:
- Printers and print-management companies with high volumes and lower
margins who may also offer design and who may also outsource to Asia.
- Medium to large B2B Publishers working in the same markets as SPG.
Hard sales approach associated with current advertising sales may interrupt
or confuse the message put across by a more consultative and relationship
orientated sales approach.
17. Propositions to the market
• Proposition:
• SPG Media produce some 130 products, 60 or so of which are in print. In order to produce these products, the
group employs publishing teams of designers, sub-editors and production staff.
The majority of products are produced only twice per year, and consequently the group experiences a high
degree of fluctuation in workload throughout the year.
• SPG owns extensive assets including distribution data on global decision makers in your markets and an extensive
content database.
• SPG Media is now offering use of these services and assets at low cost in order to help cover it’s overheads during
the quiet periods of the year.
• A simple and economical service with a specialist B2B media company working your markets.
• Simplifying the supply chain for clients who currently outsource their needs to a number of separate companies.
Please see Client presentation
18. Critical success factors
• Ability to easily adapt the current workflows to pitch for and produce
contract publications and other printed material without disruption to current
workflows or the sales process.
• To gain quality leads in high enough volumes to ensure success.
• Responsive internal culture, particularly from sales, production and design
in responding to enquiries and producing accurate and relevant quotes and
pitches within reasonable time frames.
19. Future development
New services:
The Indian office will be ready to discuss offering database management and
appointment booking services from April- May 2005.
New markets:
Once phase 3 is established and a good revenue stream is coming in, the next
steps for discussion could be:
• To begin specialising in another market. (Having completed Phase 3)
• To integrate contract electronic media services and events based services.
• To integrate sales of all services by account management teams.