Business Plan Executive Summary 2016 “Fill the gap” campaign
October 2015
Agenda • • • •
Local World Strategy Portfolio development Commercial Opportunities People
Local World Strategy 2016 Exceed business goals. Increase digital audience by minimum 30%. Stabilise the sale of our print products to single digit decline. Fill the gap between print advertising decline and digital advertising revenue growth . Grow data on users so ultimately they become consumers. Maximise opportunities with existing portfolio. Highly motivated and multi-skilled staff. Grow subscriptions. Be the best multi-media division in Local World. .
Portfolio development
Bristol Portfolio Review • Why review the portfolio? • Profit growth year on year • Fast growing digital audience • Fast growing digital revenues
Bristol Portfolio Review • South West newspaper of the year • Print and circulation revenues of more than £7m • Print revenues -12% year on year • Circulation decline of -10% • Circulation revenue shored up by a price rise • Retail sale of 15,000 in an area of 510,000 • Reaching a circulation and response tipping point
Bristol Portfolio Review • Second-biggest free weekly in the UK • Print revenues of £1.3m • Print revenues are -28% • Print and distribution cost of £1m • Advertisers are not wedded to the product • It will be loss-making within 18 months
Bristol Portfolio Review • Reduce Observer distribution, run it for cash? • More price rises on the Post? • Neither option is a solution for growth • We have a much better idea • Takes Manchester model further • Creates a strong solution under one brand • Creates a platform for digital growth • Post penetration goes from 29%-49% • Better contribution to the bottom line
Bristol Portfolio Review • • • • • • • •
Bristol Post proposed to become hybrid model Paid-for, free pick-up and door to door on Thursday & Friday 150,000 copies across both days City package for advertisers on Thursday/Friday to include digital and print Option to buy City package Thursday or Friday Conversion of £1m advertising revenue from Observer Bristol Post digital first loved & supported by print Close North Somerset Mercury
Bristol Portfolio Changes Model1 : Closing Observer Model2: Bristol Post PaidFor plus Bristol Post Free 2016 No Changes Profit
2,791,036
2017
2016
Model 1
Model 2
No Changes
Model 1
Model 2
Var
2,082,272
3,131,338
2,084,245
1,626,718
2,408,975
340,302
Budgeted 20,000 copy reduction delivering print/distribution savings:
210743
Net potential profit increase
129,559
2017 Var % 12.2%
Var 324,731
Var % 15.6%
Gloucestershire • Monthly GL glossy magazine to be incorporated into GL/Weekend weekly • £1 cover price on Saturday • Aligning the portfolio to focus on digital marketing and print • 3 websites – 3 print brands
Somerset • Weekly magazines in each print title • £1 cover price • Newspaper sales specials i.e. Glastonbury, Agusta Westland 100 years • Closure of IT Magazine • Focus on Weekend and digital marketing
National/Regional • • • • • • •
What’s On Property Portal South West Business Google PPC Websites Digital Display Directory
Commercial Opportunities
Leads Marketing • • • • • • •
What’s On Property Portal South West Business Google PPC Websites Digital Display Directory
Advertising Review • Market salary review – average salary Field Sales £19k Somerset - £25k Bristol/Bath - £21k Gloucestershire • Alignment of accounts • Retention and prospect teams • Appointment setting temp team • Digital health check
Digital Seminars & Digital Marketing Objective: To own the digital space in each of our towns and cities by educating
all businesses in our marketplace
Seminars x 6 per year in each area Heavy marketing campaign to promote digital marketing
Events
Events (New) • • • • •
£1m revenue Overall 50% contribution Bristol Green Capital Health Awards EDGE Awards (Digital)
Newspaper Sales
Pillar Promotions • Win a Minibus • Win a Wedding • Win £15k for your community • Baby of the Year • Smaller promotions secured for the year
Outdoor Events
Newspaper Sales Retention • Plus loyalty • Targeted canvassing plan • Business partnerships • Retailer telephone sales calls
People • • • • • •
Editor of the future programme Future sales directors training Junior management programme FTE & Salary Review Media hub implementation Development & objectives for all departments
Opportunities • John Lewis announcement in Cheltenham • Gloucester Citizen 140th anniversary • Positively Bristol/Bath & Gloucestershire • Streamlined focus on portfolio