- Reseller: includes wholesalers, retailers across the country.
- Online Customers: groups of customers who buy digital version of magazine, including all internet users.
2.3- Competitor Analysis
The biggest competitors of MOVIESTAR magazine include printing magazines and E- magazines, the most prominent of which include:
- Printing Magazine: TIEP THI VA GIA DINH magazine. This magazine has the largest number of share volume that is about 1 million average readerships. However, this magazine focuses on older women and households which may not be a threaten for MOVIE STAR magazine.
- E-magazine: the biggest competitors of 24h Online Advertising Joint Stock Company are VNExpress website with 38% of traffic, and Dan Tri with 32% of traffic. However, the content of these two websites does not attract the attention of young people. Besides, there are also some emerging websites for teen that our company should notice, such as Kenh14, Zing…
2.4- Marketing Intermediaries
Since this is the first launch of printing magazine, and doing business online, 24h Online Advertising Joint Stock Company does not have distribution channel system for introducing our new magazine. However, based on the its reputation, 24h hopes that it quickly expand distribution channels across the whole country.
24h company determines to focus on expanding retail market for printing magazine. Digital version can be developed by our existing website.
2.5- Product Analysis
In order to be consistent with market demands for young people, our magazine will be published with the following features:
- Published in two versions which: print and digital.
- Designed with youthful and modern style to attract attention.
- Edited to fit Vietnamese culture.
- Published every 2 weeks, with have a special edition every 3 months.
- Set sold at a price of 20,000 VND per unit for common edition and 40,000 VND per unit for special edition. The price for customer who orders for one year will be 450,000 VND. The price of digital version is 10,000 VND.
2.6- Strengths, Weaknesses, Opportunities, and Threat Analysis
We use SWOT table to identify Strengths, Weaknesses, Opportunities, and Threat for MOVIE STAR magazine as below:
* Strengths:
- The price of magazine is reasonable: the company set the low price that can be affordable for customers. We should apply Penetration Pricing strategy while setting the prince.
- Quality of the magazine is high: by using total quality control, the magazine’s quality is very high comparing to other existing magazines in the market while considering content, design, and quality of printing paper.
- The reputation of company is high: 24h Online Advertising Joint Stock Company has established a high reputation in Vietnam market because they have been operating for more than 8 years.
- Financial fund of company is stable: with the current business activities, 24h Online Advertising Joint Stock Company gains 120 billion VND per year[4]. With such huge financial ability, the company is able to invest to MOVIE STAR magazine.
*Weaknesses:
- Distribution channels: Magazine has not established a large distribution channels. Therefore, in their marketing strategy, one of the important goals of the magazine in the first year is to set the different distribution channels to bring products to consumers. To do this, investing in magazine promotion also need to encourage distributors to corporate with us.
*Opportunities:
- The trend of young people: one of the activities, which will become the trend of young people today is to find out information of famous people. The MOVIE STAR magazine does not only provides information on special films, but also gives young people the information they are interested in.
- Number of customers: the targeted customers are in the age from 14 to 35, the number of this magazine’s customers is very big, around 20 million people, which accounts for 20% of the national population.
* Threats
- Many competitors: because the company will develop two types of magazine, which are print and digital types, its competitors are also very diverse including other printing magazines and other printing websites.
- Inflation of Vietnam economy: Vietnam economy now has inflation rate up to 12.7% in 2011[5], which causes people to limit spending and affect the magazine’s sales volume.
3-MARKETING OBJECTIVES AND ISSUES
3.1- Objectives
Marketing objectives
Build brand name and raise brand awareness
Pay attention to marketing to create a memorable and distinctive brand image
Increase market share
2. Financial objective
a. First-year objectives
During the initial year on the market, we are aiming for a 5 percent share of Vietnam magazine market with about 125,000 readerships.
b. Second-year objectives
Our second-year objectives are to achieve a 10 percent based on about 250,000 readerships.
3.2- Issues
Because of being a new entry to the field of publishing, in order to expand markets and improve its reputation, the magazine needs a large investment in terms of advertising and promotion to encourage distributors as well as consumer satisfaction.
4- MARKETING STRATEGIES
4.1- Market Segmentation, Targeting and Positioning
Marketing Segmentation
We distribute a large amount of magazine. We identify meaningfully different groups of customers:
b. Targeting
Our primary consumer target is youth living in big cities. They have high demand for high quality product.
Our primary business target is companies in hospitality industries such as stations, hotel, airport, traveling, etc.
c. Positioning
MOVIE STAR targets to position our product on customers’ mind: when customers think about our product, they think about our brand name with outstanding attributes: young, famous, trendy and dedicated customer services. Similarly, when they seek these features, they think of MOVIE STAR immediately.
4.2- Marketing Mix
4.2.1- Product Strategy
a. Product
The magazine includes all the features described in the earlier Product Analysis section. Our marketing programming will contain following factors:
» Branding: MOVIE STAR logo should be beautiful and attractive. There are two ways to improve its logo: using the Designing Department to make a new logo or organizing a designing MOVIE STAR logo contest.
» Quality: we need to maintain and improve the quality of inputs by training workers and using high quality raw materials. Also, we should keep researching to increase quality of content and reduce cost of production, to enhance profit.
» Packaging: we should design packages to capture customers’ attention. They should be more attractive to display in the customers’ home, easier to realize among similar products, and more likely to be remembered on customers’ future shopping trips.
4.2.2- Place Strategy
It is the first time that the 24h company introduces a new line of magazine. As a result, MOVIE STAR needs to have an effective distribution strategy to introduce its products to the market and to receive more positive respond from its customers.
To promote printing version of MOVIE STAR, 24h company should concentrate on expanding the distributors, such as local shops, because there are many of them across the country. Moreover, consumers prefer to buy newspapers and magazines in the shops close to their houses. 24h company should also aim at places where many offices and companies concentrated. On the other hand, 24h company also needs to cooperate with the posts to deliver the magazine through post ways.
MOVIE STAR builds its own website to distribute magazine to the whole country with the digital version. The digital magazine will be distributed automatically to the customers’ emails.
4.2.3- Pricing Strategy
a. Product line pricing
At present, MOVIE STAR has three different types. The normal edition is published every 2 weeks. The special edition is published every 3 months. Beside the printing version, the company also publishes digital version.
The company should set different prices for the extended products in the product line. Specifically, the appropriate price for normal edition, special edition and digital edition are at 20,000 VND, 40,000 VND and 10,000 VND for each unit respectively.
b. Product bundling pricing
In order to promote the sales of our products as well as to encourage customers to experience different products of our company, we will combine several products and offer the bundle at a lower price. The basic bundle will contain:
+ Buying the full printing editions published in the year will be 450,000 VND that cheaper than buying each edition.
Price-Adjustment Strategies
a. Discounts
24h company should apply the Discount and Allowance Pricing strategy by two ways:
Giving promotional allowances to reward resellers in participating in advertising and sale support programs. By doing this, our products will be pushed down the channels much more efficiently.
Giving resellers lower prices when they purchase the products in bulk. For example, when resellers buy 100 units, we discount them 5 percent of price.
b. Psychological Pricing
Due to the competitiveness market and current financial crisis, psychological pricing plays an important role in drawing consumers’ attentions. Instead of the price at 20,000; 40,000 and 10,000, we will set the price at 19,900; 39,900; and 9,900 VND for different versions. These will be more likely to be seen as a bargain price compared to our competitors’ prices.
c. Promotional Pricing
24h company should coordinate well with its retailers to perform this strategy effectively. Our distributors will give chances to customers to purchase our products at lower prices for a short amount of time. Specifically, we can conduct the our promotional price in celebrating and holiday occasions.
4.2.4- Promotion
Promotion mix strategies:
Push and pull strategies: our company should apply the push and pull strategies. The pull strategy is to attract more customer through promotional campaigns in which customers will have more demand with our magazine. A pull strategy requires a highly visible brand that can be developed through mass media advertising or similar tactics. Therefore, 24h company should invest a fair amount- into advertising to increase the magazine image. In addition, the push strategy will enforce our magazine come to customer through resellers.
Simple diagram explaining some example differences between a push and pull promotional strategy[6]
Promotion tools
Selecting advertising media is the important step. Because of our targeted customers is the youth, we should choose the reasonable media to advertising to ensure our messages.
Advertising media
Public relations
By using PR (Public relations), we can advertise our company’s image and our magazine. Our company should organize some special events, which are interested in by the young. For example, we can organize game shows, music live shows, and competitions.
5-BUDGETS
Forecast Sales and Costs
With the printing magazine, we will publish 125,000 products to sell in the market with an average price is 20,000 VND per unit in the first. Therefore, the forecast sales of the first year is 125,000 * 20,000 = 2,500,000,000 VND.
We would like to sell 500,000 units of those in the digital editors at the price of 10,000 VND. Hence, the forecast sales of digital editors is 500,000 * 10,000 = 5,000,000,000 VND.
We estimated the fixed cost is 2,000,000,000 VND. The variable cost is 3,000,000,000 VND.
The total cost is 5,000,000,000 VND.
Forecast Profitability
We have break- even volume = 5,000,000,000/ 15,000 = 333,000 units.
It means that 24h Company will have profit if the sales volume exceeds 333,000 units.
6- IMPLEMENTATION AND CONTROLS
6.1 – Implementation
Action program
The MOVIE STAR magazine will be introduced in June. Following are summaries of the action programs we will apply during the first 12 months to achieve our objectives.
May: we will expand our distribution channels and check the entire magazine and its content before introducing them in December. We need to start our advertising campaign on mass media (announce the appearance of our new magazine).
June: we will start selling our magazine to the market. We still need to expand our distribution in this month. Advertising activities need to go on often.
July: this is the time for us to research about our customers’ attitude with MOVIE STAR for improving the magazine.
August: we will do our public relations plan that organizes the special events. Moreover, our research activities will have to go on.
September: Discount strategy for reseller is conducted to boost up market share. Advertising activities and research will go on.
From October: we will continue advertising campaign and research customer demand to prepare publishing other product lines.
6.2. Control
From July, we will develop our research activities to know customers’ attitude about our magazine. We need to know clearly their reaction with our magazine (about design, information, price, content, and quality) to decide our next production. We should arrange meetings with marketing department and carry out surveys to assess brand awareness. The goal is to raise customers’ awareness.
Moreover, our promotional activities need to be taken care of to make customers satisfied. We can survey through email or on street to find out how popular we are; we can also examine quality controls and customer services. Our purpose is to improve customer relationship.
In addition, arranging monthly meeting with accounting department to evaluate sales and profit figures, review our cost are necessary and have to be carried out. We need to make sure that our sales revenue will grow gradually through months. From the information collected, we will be able to know whether our market share is growing or not.
Total words: 2915
MAKETING PLAN
MOVIE STAR MAGAZINE
STUDENT:
CLASS :
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[1]http://sieutruyenthong.com/xa-lo-thong-tin/truyen-thong-online/501-mo-hinh-quang-cao-truc-tuyen-24h-da-den.html
[2]http://blog.euromonitor.com/2012/05/top-10-consumer-trends-for-2012-youth-future-imperfect.html
[3]http://www.vietnamonline.com/az/vietnam-age-structure-and-population-pyramid.html
[4]h
5http://www.business-in-asia.com/vietnam/vietnam_2011.html
[5]
[6]http://www.marketing-made-simple.com/articles/push-pull-strategy.htm#axzz1w4US16we
by
oanhpham266 (student)
