Group Publishing, Inc. (Group Publishing), is the publisher for ‘#8220’ Artists In Business magazine. The magazine, which printed the first issue in July/August 1996 and is directed to artists of all levels within the United States, has been published several times since then. The management of Group Publishing is targeting a total combined circulation of “Artists In Business” of 206,000 in year one, increasing to 310,000 by the end of year three. The magazine will appear bi-monthly. Press runs will increase over the next three years. Subscriptions can be built using sample distribution, organizational sale, and direct mail targeting artists.

Group Publishing will also market the books through direct marketing and established artist distribution channels. The direct marketing of Group Publishing books will be implemented through its magazine readership base.

Publishing is a high profit and high margin business. A successful marketing strategy is essential for success. To increase its total distribution base quickly, the Group employs a multi-dimensional sales strategy and marketing plan. These same channels and methods were used to establish a circulation figure of 500,000 for Visionary Artist’s periodical in its first year.

The Group’s plan is a success. It will generate sales revenues of $3.1million, $4.8million, and $6.4million for the first year. Net profit will increase steadily over the next three years.

The following chart shows you the highlights of your business plan. Each year, sales and margins increase. Net profit also increases. The marketing costs involved in building the base of circulation are the reason for the lowest margins.

1.1 Objectives

The initial objectives of The Group are as follows:

1. To raise $150,000 seed capital to ensure publication by the second month and to create a cash reserve for market subscriptions.
2. Direct sampling and advertising will help to achieve 90,000.
3. To reach an additional 50,000 subscribers in year one by means of organizational sales.
4. To sell another 10,000 two-year subscriptions.
5. Two 36 page issues will be published initially, each with 50,000 promotional copies.
6. To reach 48 pages in issue number 3 and increase press runs by 75,000 promotional copies.
7. In issues 5 and 6, there will be 100,000 more promotional copies.
8. By the end of the first calendar year, the average ad page price will have increased from $1819 to $2618.
9. Each issue will sell on average 17.5 ads pages during year 1.

1.2 Mission

« Artists in Business » magazine is for any artist who works at any level. The magazine has a commitment to be a platform to profile artists who are representing artistic vision in the marketplace and who can both encourage and provide role models to other men and women. Group Publishing will use its magazine, books and editorial content to inform artists about artistic principles and encourage interaction between artists and businesspeople. Our mission is to promote the concept of “community” in the workplace.

1.3 Keys to Success

The keys to success are:

• Attaining target circulation levels
• Controlling costs while spending the most money on subscription marketing in the first year.
• Monitoring all media executions closely for the highest response rates.
• Two to four books titles will be followed-up in the second year.
• Targeted advertising sales revenue.
• Having quality editorial content in each issue.
• Making all production and distribution dates in a timely fashion for each issue.