Business plan final1

Business Plan THE CUT Magazine

By

Katy Watson

Contents The Concept Pages 1-8

The Consumer Pages 9-22

Competitors Pages 23-38

Operations Pages 39-72

Marketing Pages 73-80

Finance Pages 81-94

Conclusion Pages 95-102

Collaborations Pages 103-120

Executive Summary The Cut magazine is a fashion and travel print magazine that informs the reader on what to wear in different destinations around the world.

In an age of digital expansion, it fills a gap in the market for print publications; the magazine gives the reader an in-store experience as it incorporates material swatches into the pages so the reader can feel the fabric like they would in-store. As a creative and interactional element, the magazine attracts consumers with busy lifestyles due to it’s convenience factor and those that seek escapism and adventure, producing inspiration in both fashion and travel.

It will be a quarterly publication, with an issue for each season and will be available to subscribe to through the website. Despite it not having a digital version, The Cut does connect with the digital native consumers through it’s digital scanning feature. This allows the reader to scan any product which leads to a video of the garment in the location and then onto the purchase page, again illustrating convenience.

The Cut will launch in February 2019 with it’s first Spring issue. Leading up to it’s release there will be varied marketing techniques teasing the release through both social media and traditional marketing, which will continue after the launch as normal, appealing to all targeted consumers. It will be available in locations such as retail stores, bookshops and hotels in central London to begin with, then will hopefully expand it’s channels of distribution outside of London and worldwide.

In terms of finance, the product will be priced at £15, a justifiable price due to what it offers compared to it’s competitors both on the lower and high price bracket. Initially it’s launch circulation will be aimed at 10,000, increasing to 40,000 by the winter edition. CPI printing partners will underwrite £100,000 start up costs which will be repaid in the first 12 months, as well as injecting £1,000,000 for 75% of the shares. Sales income will come from retail sales, subscription sales and advertising.

The Cut is a well considered niche magazine, capitalising on it’s uniqueness. It is viable, soundly financed, and with a dedicated team is well placed to take advantage of the numerous routes to further expasion in the UK and worldwide.

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C T P CE

N O C

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Concept NAME: The Cut PRODUCT: Magazine SUBJECT: Fashion and Travel TYPE: Print ISSUED: Quarterly The Cut is a fashion and travel print magazine that educates the reader in the different materials to wear in different destinations. It does this by giving the readers a shopping experience by incorporating material swatches into the pages, bringing a sensory interaction through touch.

“In a nutshell, I love it! I think it’s a great idea and I’m a big fan of the idea of taking a retrospective approach and adding a twist to the humble printed magazine. Long live paper and ink! I also think the name works well with the concept of the magazine.”

(Darren Farman, Arch Creative, 2018)

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“More than 55% of consumers visit stores before buying online emphasising that high-touch physical and seamless omni-channel experiences are critical for modern retailing” (Mintel, 2016) Despite digital expansion in the media, print magazines are still a product that is both wanted and needed. In an era of constant digitalisation and online status, consumers need a ‘break’ and want more traditional methods that reminds them of a time without the business of the digital world.

From the researcher’s key drivers, the need for escapism and consumers needing to trust more, an idea of a traditional print magazine was developed.

To make it innovative and to give the consumers an interactive and entertaining read, another key driver and consumer tribe , the element of touch was incorporated. This was due to the fact that ’65% of women want to touch products before they purchase them’ (Mintel, 2016), allowing them to feel their quality and tactility. This is implicated so the consumers have this interaction and in store experience from the comfort of their own home or wherever they read the magazine.

Convenience is another key factor in the idea process, thinking about what the consumer needs when travelling and the preparation towards it, focusing on targeting those with busy lifestyles.

Some concerns had been raised at an early stage as to the practicality of material inserts into a magazine format. This has been fully investigated with printing partners CPI and whilst the cost of the “Tippin” (material insert) either a) directly into the magazine or b) as a separate insert, is considerable, it sets the product apart from it’s competitors, confirms it’s uniqueness and underpins it’s premium price. Option a) has been included in the business cost model.

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The Features Inside the magazine

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Main Feature

-Main material and location using the touch element, different in each issue.

-Includes fabrics qualities and a detailed guide and information on the location; -Hotels, food, maps, events, sights and shops etc

Locations

-Nine other locations featured for the season and what to wear -Has less of a destination profile but still provides the information and inspiration

Digital feature

-All clothes can be scanned for AR videos of the products in the location featured then the reader is taken to the purchase page for the chance to buy immediately

Interviews

-From travellers, designers, figures of influence which change with each issue

Shoots

-Shoot spreads that match the season and theme of the issue

Particular trips

-Advice and inspiration for defined trips such as work/business trips

Star favourites

-Celebrities spotted in the featured material or location

Reader favourites

-Readers have the chance to be featured in an issue by tagging the magazine in their own travel and fashion photos on Instagram

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Objectiveslues and va

To educate the reader on the different materials to wear in different destinations To entertain the reader through interactive features and allow them easy access to purchase the products they like To give the reader a convenient in-store shopping experience from wherever they read the magazine To give the reader the opportunity to feel the clothes’ quality and tactility before they purchase them Values Sustainability - Materials used in the magazine are from swatches and left over fabrics from manufacturers thus helping to reduce waste in the fashion industry.

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Market Gap There is an opportunity to fill the gap in the market for a fashion and travel magazine with sensory interaction.

This is an innovative concept using touch that has never been done before.

It provides a traditional product that has been around for years delivered in a new way, creating a niche market.

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C S R E

M U NS

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The Consumer Tribes

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Qualityw conscious learners

Driven by quality, these consumers purchase long lasting and reliable products with a story behind them, wanting to learn as much as they can about them and feel good using them.

Nestalgics

Fed up with being immersed in the internet for too long they want and need a break, developing a longing for some traditionalism in all aspects of life especially the media. These consumers long for a relaxing break from the fast pace of the digital world.

Experience Seekers

Eager for some different and interactive, they live for the experience of exploring new places as well as finding an experience right where they are. It is all about visuals first and ones they can interact with.

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Primary Consumer

AGE - 26-35 SEX- Female CLASSIFICATION - Affluent Greys and Flourishing Families; B5 Affluent professionals C10 Well-off working families OCCUPATION - Full time job DISPOSABLE INCOME - Sufficient level GENERATION - Gen Y LIVING STATUS - First/second time city home owner MARITAL STATUS - Newly married couples/Full nest I PRIORITIES - Family/home/work/experience LIFESTYLE - Busy/sociable/experience seekers MEDIA STATUS - Online and print/blogs NEEDS - Entertainment/convenience/inspiration/long lasting products MAGAZINE FAVOURITES - Grazia/Suitcase/I-D

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Secondary Consumer

AGE - 36-45 SEX- Female CLASSIFICATION - Wealthy Executives; A1- Wealthy professionals A2 Wealthy working families A3 - Villages with wealthy commuters OCCUPATION - High level full time job/parent DISPOSABLE INCOME - High level GENERATION - Gen X LIVING STATUS - Comfortable home owner MARITAL STATUS - Full nest I/Full nest II PRIORITIES - Family/health/happiness/creativity LIFESTYLE - Busy/exciting/experience away from the internet MEDIA STATUS - Print/traditional methods NEEDS - Convenience/information/a break/quality MAGAZINE FAVOURITES - Red/Living etc./Sunday Times Travel

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Tertiary Consumers

AGE - 18-25 SEX- Female CLASSIFICATION - Educate Urbanites; E15 - Affluent urban professionals E16 - Prosperous young professionals Starting out OCCUPATION - Student/first job DISPOSABLE INCOME - Low level GENERATION - Gen Z LIVING STATUS - Student accommodation/first time home owner MARITAL STATUS - Bachelor stage/newly married couples PRIORITIES - Education/work/social life/experience LIFESTYLE - Sociable/adventurous/interactional MEDIA STATUS - Online - Social media accounts and print NEEDS - Entertainment/inspiration/distraction/products worth time/money MAGAZINE FAVOURITES - Vogue/Glamour/Suitcase online

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“A savvier breed of holidaymaker has emerged, with people responding to challenging market conditions by planning further ahead to get the holiday they want� (Tanzer, 2017)

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Maslow’s rchy of needs Hiera

The target consumers are those of status and comfort in both their personal and professional life, earning the ability to have products that don’t just entertain, but appeal to their needs and their creative mindset, offering information and convenience.

Through Maslow’s theory the consumers are seen to be nearer the top, having fulfilled either the esteem needs or self-actualisation.

This means they have a feeling of accomplishment in their lives, physically, or they are achieving their full potential, both mentally and creatively. The consumers are at a point in their lives in which they feel secure and now want to expand their experiences along with the right information and inspiration to do so.

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Milton’s

Nature of values

INSTRUMENTAL VALUES

TERMINAL VALUES -Family security -Exciting life -Health -Comfortable life -Accomplishment

-Ambitious -Open-minded -Imaginative -Courageous -Honest

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The Adoption Process The consumers are both innovators and early adopters. Innovators are adventurers individuals that seek experience and excitement so are keen to purchase a product that offers that excitement. The magazine offers them escapism, a way to explore new places and how to do it. The interaction elements of the touch and the video scanning would appeal to these innovators as it is an exciting and communicative concept that hasn’t been done before. They would be the first to purchase the magazine and keen subscribers. Early adopters are social leaders with a educated and sociable background, therefore they are keen to find new products and be the first to use them. These consumers would lead the way in purchasing the magazine and the products inside so they can be seen to be wearing the latest fashion and visiting the in destinations featured in the magazine.

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C S R TO

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Market Sector Magazines are located in the print media market of publishing and offer a customer insight into the current fashion trends of the season. With a variety of magazines in an industry of over 3000 titles in the UK alone (Magnetic Media, 2016), they are represented by niche, independent and mainstream publishers. Despite having been the main source of fashion intel, in this new digital native era of technology and social media platforms, magazines’ place in the market has shifted. Operating in a field of more attention seeking options, magazines have had to adapt their content and delivery in order to co-exist and compete with their digital competitors.

The table below shows examples of this.

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“I love the creativity behind this idea. Katy’s working in a tough market and her idea would really breathe some life into print pages. It’s entirely unique and I’d love to see it in action” (Natasha McNamara, Glamour Fashion Editor, 2018)

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Digital forms are expanding due to them offering more interactive elements appealing to the consumer’s needs of entertainment and excitement. Despite this rise in competition, print fashion magazines are still in demand, with consumers preferring a break from digital sources, wanting more traditional methods.

Fashion magazines hold a personal connection with the reader; they have been a source of advice, inspiration and fantasy for decades, and it’s physicality of the pages is why it is still an in demand market.

The travel magazine market is more of a niche market sector, with many of them being independent. With the rise in social media, travelling has increased with consumers having more access to inspirational imagery and information, seeing more parts of the world. It has nutured an interest in travelling with the idea of escaping and exploring appealing to consumers. This has started the creation of many travel blogs and social media pages of travelling around the globe.

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“It is very hard to replicate the physical allure of a luxury magazine on other platforms.

It’s something to do with the sheen of the paper, the way that the ink sits on the page, the smell of money and desire that wafts off the page. Readers move into a different mode when they engage with a glossy” (Nicholas Coleridge, 2016) 28

t c e r i D

Competitors

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“Suitcase Magazine exists to change the way you travel. Forget underwhelming tourist clichés, and embrace the adventurous appetite of the next generation”

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t c e r i d In

Competitors

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“an incredible mix of personal style, travel, beauty and street style from around the world�

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SWOT analysis

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WEAKNESSES -New in the market -Limited consumer awareness -Limited availability in terms of sales locations -Mainly print competing with digital sources

STRENGTHS -Print industry back on the rise -Fresh and unique concept filling a gap in the market -Few competitors that have a similar USP -Lots of content -Broad product range featured -Reasonable price for just 4 issues a year -Strong ethical values with production -Appeals to women’s need to touch clothes -Involves a digital element through the videos and scanning -Has an online presence -Reader can buy a product they like immediately -Interaction and exciting element -Travel among consumers is on the rise and their need to explore -Emerging trend of escapism which the magazine offers -Emerging trend of consumers trusting and knowing a product which is also a feature offered in the magazine -Offers broader amount of content compared to competitors

OPPORTUNITIES -Expanding availability - physical stores -Collaborations with brands and companies -More promotional opportunities -Increase in awareness leading to increase in readership -The fashion industry joined the COP climate change movement in 2017 therefore increasing awareness on the correct materials to wear abroad

THREATS -Digital versions have more of a following as overall print circulation across the market fell by 5 % in 2017 -Competition offers lower prices; Cosmopolitan print magazine now sells for just ÂŁ1 -Consumer prefer more in store purchasing

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USP unique selling point

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features

-Incorporates sensory interaction so consumers can touch the products -Digital element given through scanning your phone which leads to a video of the product -Purchase page is given so the reader can immediately purchase the product -Educates and informs the reader as to the right materials to wear in different locations -Detailed accounts and guides of the featured destinations

benefits

-Provides unique shopping experience from wherever the reader is reading the magazine -Customers can purchase the products they like immediately -Readers can touch and feel quality and tactility of the products -Readers get to see their favourite products, through the video, in the destinations they want to visit -Readers have the chance to feature in the magazine through tagging the magazine’s Instagram account in their photos -Convenient for busy consumers so they can plan for their travels -It’s a keepsake product readers can look back and use again

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O S N IO

T A ER

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Structure Following several discussions with the chosen printer and distributors, CPI, it is anticipated that they, having acknowledged the magazine’s potential, will invest £1,000,000 and take a 75% stake in the business The Cut Ltd. The remaining 25% of shares will be available to incentivise the three principle officers of the company. This is good news on a number of fronts, not least due to CPI’s experience, multifaceted offering, reputation in the market and their environmental accountability.

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“The technology is out there to do this fulfilment work and again, you’re pitching to a high end

customer, so I see it as being a feasible product”

(Darren Farman, Arch Creative, 2018) 42

Staff All members of staff whether office based or out in the fiield will work up to 40 hours a week and initially, likely considerably more. Their ability to work together as a team is critical for the success of the magazine.

Managing Director

Editor in Chief

Directs and controls the magazines overall operations. Prepares development plans, monitors consumers, maintains research and plans effective strategies and accounts.

In charge of the editorial direction of the magazine. Works with the business side, marketing and editors to make sure the magazine is attracting customers, maintaining it’s own style and producing a entertaining read.

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Features Editor Oversees the layout, content and appearance of the pages, working with the department editors and writers to decide what features on those pages and in what format. They create the mock ups.

Fashion Editor Responsible for the fashion features of the magazine. They choose and create the clothing a materials featured and how it will appear, working closely with the writers so to create the right look for each issue.

Travel Editor Responsible for the travel elements of the magazine. They direct what destinations are featured and how they will be displayed, again working closely with the writers.

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Production Editor In charge of putting together the chosen features on the pages working with their designers to get the aesthetic the editors have prepared.

They also create the schedule for publishing dates and deadlines and is the role that communicates with the printers.

Designer Designs the pages of the magazine working with the editors to put together the right aesthetic for the issue.

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Fashion Writer Writes the fashion articles foe the magazine. This role includes researching each issue’s features in depth and creating an interesting read.

Travel Writer Writes the travel articles. This role includes travelling as to experience and research what they are writing about.

Freelance Writers These are writers employed to write on particular features from wherever they work. They change with each feature and are chosen to write about fashion or travel they have experienced. These guest writers may included bloggers that travel for a living so can give a lot to the magazine. They may also be figures of influence such as designers, actors, business owners.

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Digital Editor In charge of all the digital elements of the magazine. Working with the editors they create and maintain the website content as well as all the scanning AR videos and purchase links in the print magazine. They also control the social media, creating and maintaining the Instagram account.

Photographer Takes all the photos for the magazine, working on all the shoots. Works closely with the editors and stylist to capture the right look. They are also in charge of the photos that are involved in the marketing strategies and Instagram account.

Freelance Stylist Employed to style the shoots, working with the editors to create the right aesthetic. They direct how the clothes appear in the destinations. With each issue the stylists change as to create different aesthetics for each issue.

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Subcontract Marketing A company employed to work with Managing Director and Editor in Chief to create effective marketing strategies for the magazine. The magazine is their client so they have the knowledge of what is expected and the resources to further promote it, broadening awareness.

FinanceDirector Oversees the financial status of the magazine. They create strategies to keep it going and enhance it’s performance. They make investments and develop goals whilst taking into consideration the costs of every department.

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Why?

Freelance

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Legal Goods:

obligations

-of satisfactory quality -fit for their intended purpose -as described -a full or part refund -a replacement or repair -a price reduction -compensation for losses incurred -delivery of goods without delay

Digital:

-of satisfactory quality -fit for a particular purpose -as described

Distance Sales:

-provide consumers with certain information before the contract is made -obtain the consumer’s clear agreement if you want to charge for additional items -customer helplines cost no more than the basic rate -obligations on delivery, including the point at which the consumer becomes responsible for the goods

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Operation Start Up

1 Attract advertisers as financial back up and finalise contracts with them including the positioning of the placement 2 Research printers and create a plan for printing specifications 3 Contact manufacturers that will supply the magazine with the materials 4 Finalise where the magazine will be distributed to and sold from 5 Set up office base ready to start the first issue 6 Create an editorial calendar that determines content in each upcoming issue so it is planned and prepared

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Production Schedule Spring Isuue

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Operation Production

1 Research on the first issue into the features; destinations, products and materials 2 Placement of the adverts into the correct position 3 Articles and interviews are written up 4 Photo shoots take place and materials are sent for to match the products 5 Mock ups are made with all features put together and in order 6 Designed on indesign along with correct print specifications 7 Proof read and checked over by editors 8 Sent to the printers along with the materials

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Editorial Calendar 2019

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Advertising The magazine will start by featuring 8 advertisers covering 10 pages.

These will include both fashion and travel related campaigns from more niche brands and companies, ranging from double page spreads to single pages. All adverts will be sent fully completed to the magazine with the correct specifications to fit the issue. All advertisers will have the option to feature in one to four issues with a discounted price if they appear in all four per year.

The companies Fashion & Accessories; Taylor Morris - DPS Free People - Inside back cover Realisation Par - Single page Pampelone - Single page

Travel;

STA travel - Inside front cover DPS VIP Chalets - Single page La Sultana Marrakech - Outside back cover Canopy & Stars -Single page

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Manufacturers How the materials are sourced

The materials used in the touch interaction feature are sourced from the manufacturers themselves that create the garments featured. Each product is traced back whether it’s internationally or UK based to where it was made so a sample can be taken and sent to printers to be incorporated into the issue as a tippin. This is part of the magazine’s values to be aware of waste and be apart of the movement of sustainability in the fashion industry. There is a lot of waste of fabrics when garments are made, so this process aims to help decrease the amount of waste, using the waste off cuts in the magazine.

Buff clothing is a design and manufacturing company that create high quality, bespoke designs and fast deliveries to many major high street brands.

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Printing Specifications

COPIES (to start): 10,000w PAGES: 104 inc. cover PAPER TYPE: Matte PAPER GRADE: 3 PAPER WEIGHT: Inside - 200gsm Covers - 300gsm TRIM: W189 X H246 mm BINDING: Perfect COATING: Matte UV

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CPI Colour is a printing and supply chain management company.

They support clients with their design, typesetting and project management needs through their Shoreditch studio. They also have in-house facilities at their Croydon manufacturing space.

-2D and 3D design -Real-time stock control -Stock management -24 hour dispatch -In-house binding and embellishments -Perfect binding -Pack make-up and fulfilment -Subscription management -Direct mail -Fully vetted supply chain -Data processing and analytics

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Software Why?

Indesign is the most popular layout program, especially as it’s part of the Adobe suite and integrates well with Illustrator and other Adobe systems.

It is also a program that can set up document specifications ready for printing. It is used by most of the industries magazines and is constantly updating. CPI have confirmed this format fits with their systems.

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Operation Distribution

1 Once the issue is printed they are then labelled and grouped ready to be sent out 2 Subscribers’ issues are labelled with names and addresses and then packaged and delivered 3 In bulk the magazines are sent to newstands, hotels, stores, transport hubs and Stack where they will be sold physically 4 They will also be sent out individually to the brands and companies that are featured in the current issue

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Issue Calendar

CPI will also be used to deliver and distribute the magazine.

They have a quality packaging system as well as subscription management and direct mail or deliver products to their selling destinations.

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Selling Locations Spring Isuue

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“Bringing unique vibrancy to this peaceful enclave in the west of the capital, Artist Residence London is a small hotel

ideally located between the charms of Chelsea, Tate Britain and the grandeur of Westminster�

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Supply Chain Manufacturer For the materials

Production and Distribution

Printing offices Consultation

Magazine offices

Issue is designed

Selling locations Issue is distributed around central London

Printers Issue is printed, stored and distributed from

Production

Distribution

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Digital

Operation

Website

Instagram

The website will be maintained in the same style and aesthetic as the magazine. With the magazine being a solely print publication, the website aims to show and promote what the current and upcoming issues are featuring. The website will not include full articles of shoot imagery but is a platform where consumers can buy or subscribe to the magazine. It will be operated by the digital editor, working with the editors of the print magazine to tease the right content whilst also reaching out to the more digital native consumers. The print partners will manage the physical process of sending out subscriber magazines via a link incorporated in the website. Another feature of the website is that subscribers have access to be able to print off any guides or maps ready for their travels, something from the magazine to take with them to their destination.

The Instagram account is the magazines platform of social media that will gather the initial following for the magazine before the launch and continue to maintain this. Instagram has 700 million monthly active users as of 2017 (statista.com) which is why it is a useful and correct source for promoting and featuring the magazine. It is regularly used for sharing inspirational travel and fashion photos, which is why the magazine also offers the readers the chance to be featured through their own photos. The account will also tease consumers on upcoming feature and current issue photos.

There will also be Instagram stories of workers on their travels and behind the scenes footage of the shoots to engage with the readers on a more personal level.

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Marketing Strategy Instagram

Instagram is one of the biggest social media platforms, with over 800 million monthly users (statista.com, 2017). Consumers use it regularly to share their fashion and travel pictures which is why it will be the magazines main digital marketing platform. Initially, before the launch of the magazine, there will be Instagram posts teasing the first issue with imagery which will begin in November and continue until the launch date in February.

There will also be Instagram stories of behind the scenes footage on shoots in locations starting in December which will also continue until the launch. These will aim to promote the theme of travel and fashion in the magazine.

Instagram will also promote a subscription competition which will begin in January before the first issue is released. During the launch event there will be a Instagram live story, allowing all the consumers to see the event.

From here onwards Instagram will continue to be a big marketing source, constantly promoting current and upcoming issues. After the first issue in released, Instagram will start promoting the ‘chance to be featured’ element of the magazine to the consumers, allowing them the opportunity to feature in the next issue by tagging the magazine in their fashion travel photos. This platform will be a constant source of promotion, seeking to target the digital native consumers.

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An initial press release will be sent out that will be the first official mention of the magazine. It will include all details about the magazine and the date it will be launched.

This will be released in November as one of the first marketing materials and will appear in print media as well as online.

Stack will be selling the magazine so will also be promoting it on their website too. Another form of digital marketing for the magazine will be the online banners appearing on blogs and other travel and fashion related websites.

This is a successful form of pop up marketing which immediately catches the eye of the consumer visiting the websites.

In terms of traditional marketing, there will be posters appearing in the selling locations like the bookstores which would promote the first issue initially. They would hope to catch the eye of the target consumer who visit these locations. The posters would also promote the special touch feature by incorporating this into the poster, making it an interactional marketing material that consumers would should interact with. This feature would also appear in the larger posters that will be placed around London in stations and roadside advertising hoardings, promoting each upcoming issue, starting in June. These will also influence consumers to look and interact with the posters, giving them a feel for what the magazine will be like.

Email marketing will be used 2 months before the next issue is set to be released, so it will alert the consumer and remind them of the magazines release. They will also contain upcoming features and competitions with links included. Email marketing targets the consumer who use email in their line of work, those with busy lifestyles who are constantly checking them; according to wordstream (2017) email is the third most influential source of information for audiences.

There will be a launch event to mark the release of the magazines first issue which will take place at the beginning of February. This will be held in an old printing factory as to create something different and get a real feel for the whole concept of the fabrics and touch.

The audience will also get to witness the event through the Instagram live story so they feel they are apart of the launch.

The magazine will have a website which is for promotional and subscription purposes only. This means it is not a digital version of the magazine, it doesn’t contain full articles or features like the print issues, but it purely promotes the features of upcoming issues.

It is also a platform from which a consumer can buy the magazine or subscribe to it. The website will promote the initial launch as well as the competitions and feature opportunities.

It will be launched in mid December before the print magazine launch.

The magazine will also benefit from celebrity endorsement; those who are featured or interviewed would share or post about this through their social media accounts, reaching out to the wider audiences. Marketing through influential figures is always successful as it gains the attention of their followers and increases the readership.

Printed coffee cups will appear in December with a purpose to help promote the first issue.

These are created purely to target and connect with the target consumers; attracting those with busier lifestyles, who buy take-away coffees before work or during lunch.

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Instagram stories begin teasing behind the scenes footage

Continued teaser promotion

Subscription competition begins on instagram and the website

Official press release with details on the magazine and the launch

Coffee cups come out to promote first issue

December

Instagram live of event

Stack online promotion

January

February

November Posters appear in selling locations

Online promotion of pre-orders

SPRING ISSUE LAUNCHED

Website launches -starts promoting first issue

Instagram account begins -starts teasing with imagery

Launch event Selling locations start promoting in-store and online

Continued promotion of first issue release

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Online banners on blogs appear Interviewees share/post the issue

Continued

Promotion begins of chance to be featured -on instagram and website

AUTUMN ISSUE LAUNCHED

October March

April

June

May

Posters appear around London

Email marketing for next issue

Instagram posts of current and upcoming issues

August

July September

SUMMER ISSUE LAUNCHED Posters appear around London

Email marketing for next issue Continued constantly

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Finance Business Plan Considerations

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Investment and Ownership It is anticipated that due to the interest shown in this proposed publication by the distributors CPI, that they will inject £1,000,000 of equity finance for 75% of the share capital of the NEWCO to be formed and to be called The Cut Ltd. The remaining 25% of the shares will be available for the directors by way of a share option scheme once the magazine has reached break even point. The equity investor will require 5% annual interest on their investment paid annually in arrears. CPI will also fund the £100,000 initial development costs to be repaid to them out of cash-flow within the first 12 months.

Sales The retail selling price for this quarterly publication, to be launched in Spring 2019, has been pitched at £15.00 per copy, to reflect the quality of the product and the target market. The subscription service edition will be available at £12.50 including packaging and postage. The projected selling price works from a business model point of view and is comparable from the market research of similar high quality magazines, like Zoot, Self Service magazine, S magazine and Purple magazine, targeting a similar audience. In addition The Cut magazine offers the readers more and justifies it’s premium price through it’s uniqueness. It is anticipated that 25% of sales will come from the subscription service, which will be managed by the distributors CPI. They will operate this through a link to the magazine’s website and will then pick and post.

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The remaining 75% of sales will come from retail sales. The anticipated split is shown below.

Whilst at the launch date, the magazine will have a full print run and distribution drops, for the purpose of the cash flow forecast, total sales at launch are projected at just 10,000, increasing steadily to projected full circulation of 40,000 at the Winter edition.

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Advertising Advertising revenue has been modelled on current rates, for a similar quality publication Suitcase, which has a similar level of circulation.

For the purposes of the business plan the discounted average over four issues has been used:

203,040 per annum equates to ÂŁ50,760 per edition, rounded down to ÂŁ50,000 per edition.

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Staff Costs These are inclusive of all employment costs [National insurance, pensions etc] incurred by the company and cover the staff listed previously in operations and broken down below: 3 directors - £250,000 pa creative staff - £550,000 pa admin staff - £125,000 pa Total - £925,000 pa

Office Rent To have maximum flexibility, a fully serviced office facility in Camden, which is close enough to central London whilst not incurring central London costs. This has been selected inclusive of rates; heat, light, insurance and meeting rooms, sourced through Regus, the national serviced office providers, allowing 250 sq per person that works out at a cost of £500 per desk space per month. With a staff of approximately 20, this equates to a fully inclusive office rental cost of £120,000 per annum.

Office Consumables

To include computers, phones, postage and packaging, website, office sundries, with an allowance of £120,000 per annum.

Freelance Writers Based on 10 articles per addition, there is the allowance of the all inclusive fee of £1500 per article which equates to £60,000 per annum.

Insurance

An allowance for public liability is £50,000 per annum has been made.

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Cost of Sales

Subscription sales costs; Initial set up costs by CPI - £1,000 10,000 units x £2.30 each = £23,000 = £24,000 per edition Retail sale costs; Using industry standard of 15 % of retail selling price 15% x £15 = 2.25 per copy x 30,000 copies = £67,500 per edition Subscription and retail; £24,000 + £67,500 = £91,500 - x 4 editions = £366,000 per annum

Printing and Distribution Costs Printing; As per CPI quote £27,300 per edition Tippin cost - £6030 per edition £27,300 + £6030 = £33,330 per edition Distribution; £20 per drop 20 x 153 drops = 3060 per edition Total - £33,330 + £3060 = £36,390 Rounded up to £40,000 per edition - x 4 = £160,000 per annum

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Marketing With the Managing Director working closely with the subcontract marketing consultants Arch Creative, a bespoke marketing strategy is to be developed, along the lines outlined in marketing above, that takes full account of added value promotions, subscription, advertising and retail opportunities. An allowance of £40,000 per addition is made, which equates to £160,000 per annum.

Professional Fees This covers professional advice from the company solicitors and accountants with an allowance of £25,000 per annum.

Bank Charges

Banking facilities will be provided by Lloyds Bank for which overdraft facilities [guaranteed by equity investors] of £50,000 have been agreed at an interest rate of 5%.

Interest Interest on the equity investment from CPI is agreed at 5% per annum on £1000,000 which equates to £50,000 per annum.

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Budget CostingSummary Based on full 40,000 quarterly circulation

Return on cost: 459,000/2,041,000 = 22.48% Return to equity investor: 75% x 459,000/1,000,000 = 34.42% * Assumes initial development cost of ÂŁ100,000 has been repaid.

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Cash Flow Forecast

91

92

10000

10000

Office rent

Office consumables

171166

150416

13333

40000

10000

10000

20833

56250

325131

143750

50000

93750

181381

110416

13333

10000

10000

20833

56250

174715

174715

11

616668

491252

422086

311670

275879

237963

127547

181381

174715

64299

145250

256549

50000

12500

13333

68625

15000

10000

10000

20837

56250

401799

337500

337500

64299

12

13

212916

12500

13333

40000

50000

10000

10000

20833

56250

320250

175000

50000

125000

145250

WINTER 2019

110416

13333

10000

10000

20833

56250

107334

107334

14

13333

91500

15000

10000

10000

20833

56250

446918

450000

450000

3082

15

107334

3082

229989

727084

110416

13333

45750

15000

10000

10000

20833

56250

352547

225000

225000

127547

10 AUTUMN 2019

Closing bank balance

150416

13333

10000

10000

20833

56250

237963

237963

9

13 148291

13333

40000

10000

10000

20833

56250

388379

112500

50000

62500

275879

8

216929

110416

7 SUMMER 2019

272916

150416

13333

22875

15000

10000

10000

20833

56250

424170

112500

112500

311670

6

Per month cost

125416

13333

10000

10000

20833

56250

422086

422086

5

Bank charges

110416

12500

Interest

13333

13333

Professional fees

10000

10000

20833

56250

Marketing

13333

15000

10000

10000

20833

56250

40000

13333

10000

10000

20833

56250

Printing and distribution

Direct cost of sales

Insurance

50000

20833

Director Salaries

Freelance writers

56250

100,000

Staff salaries

Magazine development cost

EXPENDITURE (money out)

1,000,000

Total cash available

572502

81250

1,000,000

Total money in

616668

50000

Advertising sales

727084

31250

1,000,000

616668

Subscription sales

Retail sales

Initial investment

SALES (money in)

727084

4

491252

0

3

Opening bank balance

2

SPRING 2019

1

Issues

MONTH

Table 1 16

254573

150416

13333

40000

10000

10000

20833

56250

404989

175000

50000

125000

229989

SPRING 2020

Break Even Analysis (On the basis of full circulation)

Fixed cost per month

£1675,000/12 =

The variable cost per magazine

366,000/ 160,000 =

£139,580.00 £2.29 per copy

Average total 2,500,000/ revenue per 160,000 = magazine

£15.63 per copy

Contribution £15.63 towards £2.29 = fixed cost (Selling price - variable cost)

£13.34 contribution towards fixed copy per magazine sold

BEQ

10463 magazines

139,580/ (15.63 2.29)=

In this model 10,463 magazines per month need to be sold to break even.

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94

95

C N O SI

U L C ON

C

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Future Goals

-Increased readership with a wider variety of consumers -Increase in number of copies printed -More selling locations venturing outside of London and worldwide -Larger staff workforce with more freelance writers -Larger marketing budget with bigger campaigns like billboards -Bigger advertisers and raised prices -More manufacturers to supply the materials -Scheme created for the ethical supply of left over materials -Bigger and more figures of influence featured

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Future Supply Chain Distribution

98

Future

Media Kit THE CUT Magazine Media Kit 2022

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About Fashion and Travel Quarterley publication A magazine focused on fashion and travel, educating the reader on what to wear and where to wear it. The magazine provides a touch element so readers can feel the quality of the clothes and the different materials.

Detailed accounts of featured destinations are given to encourage readers to imagine themselves there in the clothes and inspire them to travel and to travel in style wearing the right materials.

Demographics

89%

11%

£15

“The new fashion and travel bible” Stylist “A brand new way to read magazines, bringing print back in the game” The Times

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Where?

Distributed globally in newstands, selected retail stores, hotel, book shops, stations and aiports.

It is availible in the most creaitve parts of the cities in 33 different countries.

Availiable to buy and subscribe to online in Stack and www.thecutmagazine.com Instagram @thecutmagazine

Advertising

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Conclusion To conclude The Cut magazine exudes originality and creativity and is a premium product that fills a gap in the market. Being a print magazine in a digital world, it meets all the criteria for offering it’s readers something more; through interaction, convenience and a break from the digital world. The magazine includes features that attract and connect with the tribes and target consumers mentioned above and offers a theme and interactive feature that has never been tried before. The concept of offering an in-store shopping experience from the comfort of the reader’s own home is also something new and different. In addition the business model, projected profit and loss and cash flow forecast confirms the magazine’s financial viability in it’s own right and also seeks to show a good return on the equity investor’s investment, rewarding their confidence in the magazine. Finally, once the current projected circulation levels are achieved, with a creative marketing strategy, there is great opportunity to further increase readership, awareness and reputation, and to expand worldwide. In short, the uniqueness of the offering, ensures that the magazine has every chance of success.

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Collaborations For the Final Major Project, a select few collaborations were made for some areas of the business plan in order for The Cut magazine to be shown to be realistic and correct in strategy. Various companies were contacted to ensure the project was functional and creative. Below is a selection of each collaboration to illustrate what took place.

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Arch Creative Marketing Arch creative contirbuted to the marketing section and became a valuable source of positive feedback, agreeing to become the appointed external marketing consultants, happy to work with the magazine.

Following a meeting at their offices from which we discussed business details and marketing stratergies. “darren@archcreative.co.uk” <darren@archcreative.co.uk> “katywatson97@hotmail.co.uk” <katywatson97@hotmail.co.uk> Wednesday, 11 April 2018, 14:23 The Cut magazine

I looking forward to Arch Creative becoming the marketing consultants for the magazine and working with you.

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CPI Printers Printing and Distribution CPI helped with all the printing specifications and prices, allowing the finance to be acurate and reliable coming from professional printers and manufacturers. They also contributed to the distribution details, informing on the correct approach.

Pages 61,62,65,66,92

Following a telephone conversation discussing the more finite details of the print specifications.

â&#x20AC;&#x153;katywatson97@hotmail.co.ukâ&#x20AC;? <katywatson97@hotmail.co.uk>

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Katy Watson

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Katy Watson

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Katy Watson

Telephone Conversation With Mark Mackintosh Wednesday 4 April, 6pm He confirmed industry standard cost of sale of retailers to be 15% of retail selling price and that a reciept of money from sales was often up to two months after the edition was released.

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Katy

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Buff Clothing Manufacturers Buff clothing became the associates of the manufacturing side, offering their efforts to the sustainability scheme of using the wasted materials for the tippins.

Page 59 â&#x20AC;&#x153;katywatson97@hotmail.co.ukâ&#x20AC;? <katywatson97@hotmail. sangita@buffclothing.co.uk Wednesday, 4 April 2018, 12:03

Telephone Conversation With Sangita Khan Wednesday 4 April, 11am Disscussing details on the process needed from her manufacturing and design company.

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!

Buff Clothing !

17 Collingham Road!

Leicester!

LE3 2BB! Tel: 0116 288 0200!

!

Katy Watson 5 Cherry Holt Lane!

East Bridgford !

Nottingham!

NG13 8PN!

! ! ! ! !

Hello Katy,! !

Date: 5 April 2018!

Thank you for you email. We at Buff Clothing are pleased that you have now secured the equity investor and are pressing ahead with this project and we are keen to be associated with it. We conďŹ rm that we are happy to supply .. up to 120,000 75 x 75m seasonal material samples, relevant to your intended articles. These will be cut to size from our waste material, packed and delivered to your printers by the print deadline for each edition. !

!

As discussed we are pleased to do this for you as it ďŹ ts with both our and your own mission statement to pursue a sustainable business. All we ask is that you reimburse us for the package and posting costs and I know you have already agreed to make reference to our service in your magazine. !

!

We wish you every success and look forward to hearing from you further.! !

Kind Regards! !

Sangita Khan ! !

Head Designer!

Buff Clothing

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Warners Printers Printing and Distribution This company were contacted in the same way as CPI, as an alternative quotation. However, it was clear that CPI were far more dynamic and helpful so it was decided to go with the collaboration with CPI.

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