TAPPED IN Magazine Prospectus Loyola University Maryland Senior Capstone In Magazine Publishing Spring 2015
Table of Contents Editorial Marketing and Promotion Advertising Business
Staff Publisher: Nora Frenkiel Editor-in-Chief: Bridget Bunton Managing Editor: James Fox Copy Editors: Justin Thomas & Patrick McEnerney Business/Promotions Manager: Lisa Potter Marketing/Advertising Director: Rose Frullani-Bacon Public Relations Director: Kendall Hartzell Design Editor: Margaret Dawson Art Director: Kelly Quane
Mission Statement We’re not beer brewers but we love to kick back with a cold one just like you. Tapped in is by the people for the people. Our magazine aims to provide a one-stop source for a beerlovin lifestyle. We bring you the best in having a good time, from light-hearted to serious thrills in beer, the box-office and all things in between. Whether you’re a beer connoisseur or a beer beginner, you’re
T A P P E D I N.
Editorial Philosophy Tapped in exists to bring together all lovers of beer — seasoned experts and beginners, men and women, young and old. Beer Is not exclusive. Everyone can enjoy it. That’s what we’re all about. When you’re drinking a cold one, you’re usually doing something. Whether watching a movie, at a concert, or out on the town, beer is a part of culture. We bring you the latest on Music, Film, Food to enjoy as well as commentary on beer trends and everything to do with the frothy drinks. Our content includes round-ups, reviews, Interviews, and commentary with new information each month to ensure that our readers stay Tapped In to the latest and the greatest.
Editorial Formula Continuing Departments ◊ Light / Medium / Dark These sections detail different beers that fall in each category as well as roundups of music, film, books and food that reflect the essence of the beer.
◊ On Tap On Tap is a miscellaneous section for commentary pieces, what’s new in the beer world, and other fun stuff.
◊ Import This section details popular beers and pop culture from other countries around the world.
◊ City Section Tapped In features a U.S. city each month — from major metropolitan areas to small cities tucked away from the mainstream — that brews beer or just loves the stuff like we do. This section includes profiles, bar reviews, roundups, and commentary on the local bars and breweries.
Marketing Tapped in to Tapped In. We are magazine that prides itself on writing from the average reader’s perspective, and our marketing will reflect our down-to-earth culture. No big, flashy million-dollar commercials here. Our fun and unique marketing style will reinforce the positive attitudes about Tapped In of our current readership and attract new consumers from our target audience. Tapped In will utilize a diverse range of promotional platforms, from social media to special events to audio advertisements on streaming radio. We will strive to make sure that our readers are always Tapped In.
Cultural Overview We, the people of the United States of America, are a people that enjoy having a cold one for a number of reasons. Here at Tapped In, we are very aware that this is more than just a matter of routine. It’s a light, joyous, tasty culture; a culture complete with different tastes, music, stories, food, but all with the same level of personal enjoyment. Luckily, we have a surplus of incredible craft beer options here in America to choose from and enjoy. However, we at Tapped In look to shed light not only on the beers America has to offer, but also on the culture that goes along with it. For that reason, Tapped In looks to offer a magazine that is approachable and showcases the enjoyable experience and community America’s beers hold. Our magazine hopes to reach that culture by being a magazine that is by beer lovers and adventurers of all levels of experience, men and women alike, because that is who our readers are. We are not dictating the culture, simply enjoying the experience like everyone else. After all, beer is meant to be enjoyed, so why would its culture be anything short of enjoyable?
Demographics and Psychographics A. Demographics Sex: Males and Females – Gender Neutral Ages: 21 – 40 Location: Urban Our target demographic market is men and women between the ages of 21 to 40 years old from all backgrounds. Our audience includes individuals who are middle or upper class and most likely have a degree in higher education. Beer is something that can be enjoyed by everyone and because of that, we cater to a wide audience and are not exclusive to men or connoisseurs as are other publications on the market. Our magazine provides fun and interesting information about beer, pop culture, and beer cities around the U.S. in a unique and creative format that can be enjoyed by a wide array of beer lovers.
B. Socioeconomics Income: from 45,000 to 100,000 Our readers are financially stable and able to afford beer at any craft beer breweries. We want to target people who are employed and often go to get different beers on the weekends or after work, given that is the information we are providing. Our readers may vary from recent college graduates to those looking towards retirement. Our content targets the reader who enjoys dabbling in pop culture from going to the movies, buying the latest beach read, or seeing an up-and-coming artist in concert. Of course, this reader would need to have a stable income to appreciate and utilize our information in their actual lives.
C. Psychographics Our readers span a range from beer beginners to beer connoisseurs, young to old. What they have in common is a love of the brewed drink and aspects of social life that go along with it. Our readers are interested in the latest movie releases, new albums, travel destinations, the best bars around the country, and all the latest in beer and pop culture. We aim to target the people who are smart, fun, adventurous, and love to have a good time and enjoy a few beers.
Competition Tapped In offers 12 issues per year, which are designed to be all-inclusive for beer experts and beginners, not just high-end beer connoisseurs. The magazine caters equally to men and women while providing a connection between beer and culture. Additionally, the magazine features a new city each month with pieces on local breweries and bars in the United States. Tapped In digital is updated regularly with relevant and timely information. However, exclusive content is guarded by a paywall. And our editors wear really cool socks.
Draft magazine DRAFT is a bi-monthly print magazine, which offers beer reviews, news, recipes including and complementing beer, how-to articles, and information on beer towns throughout the United States. DRAFT magazine also has a significant Canadian readership, in addition to having an international readership base as well. Tapped In differs in catering solely to a United States audience and highlighting the beer cities that make the nation so great.
Craft Beer & Brewing Craft Beer & Brewing magazine is a bi-monthly magazine that also releases an additional special edition once a year. The magazine features over 40 blind-tasting beer reviews in each issue, recipes for home brewing, information on the best craft beer brewers and bars and recipes for cooking with and complementing beer. Its website also offers online educational courses for both long-time beer lovers and beer beginners. This magazine is provided by brewers and caters to more technical information for brewers, rather than also those who simply enjoy beer.
Beer magazine Beer magazine appears on a monthly basis, and offers information on job openings within the beer world, a guide to beer, coverage of beer-related events, beer news and images from photo shoots of the girls of Beer magazine. This magazine is obviously targeted towards men and always features a scantily clad woman on the cover. We at Tapped In understand that everyone enjoys beer and cater our content accordingly.
The magazine’s website also appears to be lacking updates as the last article posted is a job offer from January 2015.
The Beer Connoisseur The Beer Connoisseur is catered to that exact audience, featuring information on fine dining establishments, beer tastings much like wine tastings that include swirling, sniffing, and spitting, and more highbrow material. We are different in that we cater to all lovers of beer from those just starting out to those who have been drinking the stuff for decades. We focus more on the experiences rather than the logistics.
Promotion and Public Relations Plan Our primary launch event will be a beer tasting in our first featured city, Baltimore. The tasting will feature beers from local breweries, a performance from a well-known artist, free TappedIn gear and more. Tickets to our beer tasting will be available on our website for $15. Each purchase of a ticket comes with a free issue of Tapped In. There will be two subsequent beer tastings in Nashville and Portland, which will line up with the following issues of Tapped In. In addition to having our own beer tastings, Tapped In will be a presence at different beer festivals. For our launch month, we will have a booth at the Cambridge Beer Festival, the Beer Bacon Music Festival and the Maryland Craft Beer Festival. Our booth will featured free Tapped In koozies and the opportunity to sign up for a free issue. We will also have booths at the following beer festivals throughout the year: • • • • • • • • •
Savor (Washington, DC) Burning Can Beer Festival (Lyons, CO) Oregon Brewer’s Festival (Portland, OR) Vermont Brewers’ Festival (Burlington, VT) Great Taste of the Midwest (Madison, WI) Southern Brewer’s Festival (Chattanooga, TN) Brewmasters Craft Beer Festival (Galveston, NY) Brewgrass Festival (Asheville, NC) Fresh Hop Ale Festival (Yakima, WA)
• • • • • •
Drink Craft Beer Fall to Winter Festival (Boston, MA) Winter Beer Festival (Grand Rapids, MI) Philly Craft Beer Festival (Philadelphia, PA) Seven Sisters Craft Beer and Music Fest (San Luis Obispu, CA) Traverse City Summer Microbrew and Music Festival (Traverse City, MI) Beer Bourbon and BBQ Festival (Baltimore, MD)
Additionally, Tapped In will be a presence at other food and wine festivals, professional sporting events, concerts and movie premieres. Potential sponsors for these events include Spotify, Netflix, Chipotle, Cheesecake Factory, Verizon, California Pizza Kitchen, Allstate, Uber, Coca Cola, ABC, Hilton, Toyota, iHeartRadio, Smart Water and Drizzly. Finally, we have Tapped In merchandise to sell and give away. These items may include branded bags, hats, koozies, mugs, glassware, T-shirts, pens and more.
Website Tapped In will also feature an online version of the magazine to complement its print version. The magazine website will be updated with fresh content daily, and will enable subscribers to view print magazines online through a smart device or desktop. The free online content will feature some articles, however users will run into a pay wall if they decide to view more than two articles after which they must subscribe to view more content. The content will include recipes, beer reviews, beer-related events, pop culture, contests and more, and will only cost $15 per year. Additionally, members will be able to purchase branded merchandise or subscribe to the print edition online.
Social Media We will promote the magazine on our Facebook page and tweet links to our online format articles with the hash-tag #TappedIn. We also will have an Instagram where we will post pictures of the City of the Month, interesting facts about beer, articles, events, and inside details/looks of the editorial process. We also will have our Tapped In gear for sale on the website including apparel and accessories such as beer koozies.
Tapped In Magazine @TappedIn @TappedIn
Advertising Tapped In advertising will be primarily print and Print advertisements promoting Tapped In will displayed in major cities and in local breweries. will work with streaming music services, such as and Songza, to promote the magazine through advertisements. We will also look to connect and wine magazines for promotional partnerships.
audio. be Tapped In Spotify radio with food
Tapped In provides advertisements for products and services relevant to our readership. Our content attracts a diverse array of advertisers: from the alcohol industry to the travel industry. All advertisements featured in Tapped In will reflect the interests of our readers.
Alcohol Industry • Sam Adams • Grey Goose • Barefoot • National Bohemian
• Patron
Food/Restaurant Industry • Planters • Dominos • Houlihan’s • The Melting Pot • The Cheesecake Factory
• Travel • Jet Blue • Hilton • Uber • TravelZoo • Liberty Travel
Music/Film Industry • Spotify • iTunes • Netflix • Lion’s Gate • Ticket Master
Advertising Rates Color Full page- $18,000
½ page- $12,000 ⅓ page- $7,000 Black and White Full page- $12,000 ½ page- $8,000 ⅓ page- $5,000 Cover Cover 2- $22,000 Cover 3- $20,000 Cover 4- $24,000 Number of ads: 20+ -
Finances, Circulation Projections and Advertising Rates Circulation Initially, print subscribers will be charged $20 annually for a yearlong subscription, which will include six 64-page issues of Tapped In magazine. We expect that about 70,000 people will subscribe within the first year of the magazine’s release. Single print copies, will cost $6.99 per issue, and will be available nearly everywhere that magazines are sold. An option will be available for those who purchase singlecopy issues, to subscribe for either print or digital issues in the form of a postcard, or web address. We expect that about 59,000 people will purchase single-copy issues from newsstands or stores in the first year. Additionally, a digital subscription will cost $15 annually, however in future years this number may be adjusted based on digital offerings and inflation. A digital subscription includes unlimited online articles on all smart devices such as smartphones or tablets with the use of each member’s username and password. However, we will register each user’s device to ensure that he or she is not extending
his or her subscription to other friends or family. We expect about 64,000 unique people will subscribe to digital publications within the first year. A 40 percent discount will be offered to current subscribers who wish to continue their subscription for the following year. This means that a print subscription will total to $12 and a digital subscription will total to $4. This option is only available for subscribers who currently have a username and password for a digital subscription or a current membership as a print subscriber, and cannot be given to new subscribers except under the circumstances of special promotions, which will be offered during select times throughout the year. Additionally, we expect to receive revenue from merchandise sales as well as special events such as beer tastings and magazine launching parties, which will be sponsored.
Finances Revenue Net advertising revenues Gross subscription revenues Gross digital subscription revenues Gross single-copy revenues Merchandise Total
Amount $342,000 $1,400,000 $954,540 $410,914 318,182 $3,425,636
Percentage 10.0% 40.9% 40.9% 27.9% 9.3% 100.0%
Amount $573,727 $731,818 $254,546 $100,000 $60,000 $572,727 $509,091 $254,546 $100,000
Percentage 18.2% 23.2% 8.1% 3.2% 1.9% 18.1% 16.1% 8.1% 3.2%
Expenditures Advertising Subscriptions Single-Copies Editorial Merchandise Production Digital Production Distribution Administrative Costs
Total Magazine Costs Operating Profit Total Expenditures
$3,156,455 $2,522,728 $3,156,455
100.0% 79.9% 100.0%
Profitability Projection Summary of Profitability Year 1
Year 2
Year 3
Year 4
Year 5
6
6
6
6
6
192,422
202,043
214,166
229,157
247,490
Number of print subscribers
70,000
73,500
77,910
83,364
90,033
Number of digital subscribers
63,636
66,818
70,827
75,785
81,848
Number of newsstand sales
58,786
61,725
65,429
70,009
75,610
$20
$20
$20
$20
$20
Number of issues per year Total circulation
Print subscription price Digital subscription price
$15
$15
$15
$15
$15
Cover price
$6.99
$6.99
$6.99
$6.99
$6.99
Ad:edit ratio
1:2
1:2
1:2
1:2
1:2
Advertising pages per issue
19
19
19
19
19
Editorial pages per issue
45
45
45
45
45
Total pages
64
64
64
64
64
$100
$100
$100
$100
$100
Ratebase
128,786
135,225
143,339
153,373
165,642
Full-color print ad rate
$18,000
$18,900
$20,034
$21,436.38
$23,151
40%
40%
40%
40%
40%
$342,000
$359,100
$380,646
$407,291
$439,875
CPM
Average discount Average ad revenue per page
Revenues Subscriptions
40.9% $1,400,000 40.9%
$1,470,000 40.9%
Digital subscriptions
27.9%
$954,540 27.9%
$1,002,267 27.9% $1,062,403.02 27.9% $1,136,771.23 27.9% $1,227,712.93
Single-copy sales
12.0%
$410,914 12.0% $431,459.85 12.0%
$457,347.44 12.0%
$489,361.76 12.0%
$528,510.70
9.3%
$318,182 9.3% $334,091.10 9.3%
$354,136.57
$378,926.13
$409,240.22
Merchandise
$1,558,200 40.9%
9.3%
$1,667,274 40.9% $1,800,655.92
9.3%
Advertising
10.0%
$342,000 10.0%
$359,100 10.0%
$380,646 10.0%
$407,291.22 10.0%
$439,875
Total revenues
100% $3,425,636 100%
$3,596,918 100%
$3,812,733 100%
$4,079,624 100%
$4,405,994
Expenditures Advertising
18.2%
$573,727 18.2% $602,413.35 18.2%
$638,558.15 18.2%
$683,257.22 18.2%
$737,917.80
Subscriptions
23.2%
$731,818 23.2% $768,408.90 23.2%
$814,513.43 23.2%
$871,529.37 23.2%
$941,251.72
Single-copy sales
8.1%
$254,546 8.1% $267,273.30 8.1%
$283,309.70
8.1%
$303,141.38
8.1%
$327,392.69
Merchandise
1.9%
$63,000.00 1.9%
$66,780.00
1.9%
$71,454.60
1.9%
$77,170.97
Editorial
3.2%
$100,000 3.2% $105,000.00 3.2%
$111,300.00
3.2%
$119,091.00
3.2%
$128,618.28
Production
18.1%
$572,727 18.1% $601,363.35 18.1%
$637,445.15 18.1%
$682,066.31 18.1%
$736,631.62
Digital production
16.1%
$509,091 16.1% $534,545.55 16.1%
$566,618.28 16.1%
$606,281.56 16.1%
$654,784.09
Distribution
8.1%
$254,546 8.1% $267,273.30 8.1%
$283,309.70
8.1%
$303,141.38
8.1%
$327,392.69
Administrative Costs
2.3%
$100,000 2.3% $105,000.00 2.3%
$111,300.00
2.3%
$119,091.00
2.3%
$128,618.28
Total expenses
100% $3,156,455 100%
$60,000 1.9%
$3,314,278 100%
$3,513,134 100% $3,759,053.82 100% $4,059,778.13
Net income (loss)
$269,181
$282,640
$299,599
$320,570.51
$346,216.15
Cumulative income (loss)
$269,181
$551,821
$851,420
$1,171,990
$1,518,206
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Evaluation Our success will be based on the number of advertisers and advertisements we are able to acquire to meet the revenue necessary to produce the magazine in the first place. Additionally, meeting or exceeding our projected circulation and revenue rates would further translate to a successful magazine and business model. Additionally, we will determine the success of our advertisements based on Return of Investment (ROI). If our advertisements--whether print, digital, outdoor or other, and Search Engine Optimization (SEO)--meet the necessary impression and engagement rates to determine ROI. These metrics will be evaluated by our digital team, social media team and advertisement placement service or advertising vendors, in addition to an increase in profit based on number and placement of advertisements. Â