The Brandon Nicholas Eza
Table of Contents
1. Executive Summary
2. Company Description
3. Strategic Focus and Plan
4. Situation Analysis
5. Market Product Analysis
6. Marketing Program
7. Financial Data and Projections
9 Implementation Plan
10. Evaluation and Control
End notes/ References
Appendix A (All Graphs Included)
PowerPoint Presentation For Marketing Expo
1. Executive Summary
The Brandon Nicholas Eza Company is named after my brother with the aim of bringing art to a local community from local authors for a humanitarian benefit. The art will constantly be changing anwe hope to have something new to offer our customers every week.
To start this company we will need about seven million dollars, but we believe our target market of CT we will be able to account for ten million dollars in sales within our first year of operation. We will be marketing on many different venues using several different promotional elements, even personal selling to the ultimate consumers which has not yet been done in the publishing industry. We expect to be able to return at least 8% back to our investors each year by endorsing methods such as these.
Foremost we are a company who wants to create art and promote authors. We want to be able to make authors successful and strive in the publishing world by becoming famed among their peers. For this reason we will be using all local authors who know the community they are speaking to. This company is logical and sensible based on current statistics and after reviewing this Marketing Plam I am sure you will feel the same.
2. Company Description
The Brandon Nicholas Eza (BNE) Publishing Company was visualized in 2007 with the hopes of creating an organization whose objective is not only to expand and increase market share, but also to provide a humanitarian effort in the society in which it operates. To accomplish this, fifty percent of company profit is donated to a mutual fund of charitable efforts and the company allows any recognized charity to be added to this fund so long as they are non-political or religious organizations.
Our products are unique in that they will be produced mostly by local authors, printing presses and if possible even local paper and we do our part to inform our consumers of these measures. Among many reasons we want to create customers who come back to us time and time again because we are not a typical corporation, but also a community effort. In addition, our products will be well refined, edited and geared towards our market as we will continuously attempt to receive feed back from our markets through surveys and statistical analysis. With measures like these it will not take long for BNE to rise into the evoked set of the markets we are targeting.
This company markets its products on the shelves of book stores, on the pages in the internet, at the doors of residential consumers and even after organized book readings and signings. These types of marketing techniques render avid consumers, new selections and services currently unavailable from other competing publishing companies. We focus on most trade books, such as adult and young adult fiction, which represent about 7,830,000,000 dollars in sales for the year 2005 which means there is a lot of room for competition.i We will be working to gain about .7% of this market by promoting a new and growing product lines on five different medias, these medias will include radio, internet, telecommunications, door to door canvassing and event marketing where our authors will perform at organized readings and/or signings while our representatives sell books. We expect to be a top sellers in the industry, but not a best sellers as there are around 3,500 (as of 2002)ii total companies in the Industry right now.
The BNE Publishing Company believes its innovative strategies and unique humanitarian benefit will prove to create a successful company with a strong market share. This marketing plan examines how the company will enter the market in three new geographic market areas by the year 2008/9.
3. Strategic Focus and Plan
This section is an overview of three aspects of The BNE’s corporate strategy which influence the marketing plan: (1) the mission , (2) the goals, and (3) core competencies / sustainable competitive advantage of the BNE Publishing Company.
The BNE Publishing Company’s mission is to publish and market high-quality books in new and innovative ways while providing an exciting opportunity for our employees and a consistent donation to a vast mutual fund of charitable organizationiii
Over the next year the BNE seeks to achieve these goals.
- To split our profit between the company and a mutual fund of charities.
- To generate $3,000,000 in profit after one year of operation.
- To provide a return to our investors of at least 8% of our sales or $800,000.
- To produce $10,000,000 in gross revenue.
- To sell $12,821 books per week.iv
- To sell our books at an average of $15 per book.
- To target consumers who buy again and again.
- To sell about 650,000 books per year
- To enter 3 new metropolitan markets those being Hartford, Manchester and Willimantic Connecticut.
- To achieve distribution through internet markets, community markets and local or chain-store markets.
- To create about 135,000 repeat customers.v
- To create about 135,000 one time customers per year.
- To become a star on the BCG Matrix.
- To attain .7% market share in trade books.
- To develop an intelligent product in an efficient and fashionable style.
- To provide customer surveys which will help product selection, development and quality control.
- To provide a growing selection of books at a competitive price.
- To create a fund which our consumers can add to which benefits any* charity that is added equally. (*so long as it is non-religious or political)
- If it is still profitable we will seek to print on recycled paper to help
- To help authors create art.
- To pay all those employed full-time a livable wage which in the markets we seek to enter is at least $15 per hour.
- To offer a medical and dental plan, even if it requires our employees pay something.
- To offer vacation and sick pay for those who qualify .
- To provide promotions and raises at a rate comparable to industry standards.
- To develop a reputable and charitable image as a high-quality and innovative developer and marketer of literature.
- To introduce many new and interesting books; about five per week, which are appropriate to the preferences of the markets we will be targeting.
- To offer a 100% money-back return policy so long as our product is in the condition it was received and its mailing to us is pre-paid. We also ask that you provide a receipt and short explanation of the problem, but that is not required.
Core Competencies and Sustainable Competitive Advantage
The BNE is a unique and able publishing company because The BNE Publishing Company seeks to provide a valuable and quality product to an audience that needs it at a price competitive to other publishers while helping out many humanitarian causes at the same time.
We are the only publishing company in Connecticut who donates half their profits to charities, we are the only publishing company who publishes specifically local authors and we are the only publishing company marketing with promotional efforts such as grassroots canvassing. In addition to these advantages we will also be providing our customers access to a continuously updated website and the ability to join a newsletter or receive a phone call about new books we have released.
4. Situation Analysis
This analysis begins with a general overview and identification of what the factors are in several fields of which this company will be operating. To do this we provide a detailed SWOT (strengths, weaknesses, opportunities and threats) analysis followed by a customer analysis, list of competitors and the general Industry Trends of the markets we intend to enter.
The table below shows the internal and external market factors affecting the market opportunities for The BNE Publishing Company. This analysis examines the potentials, dangers and benefits this company offers and risks to its consumers, investors and employees or in effect it’s stake-holders. This analysis finds on the internal field that the company may be a small organization, but strong as it provides a new product that is likely to be easily accepted to the market since it plans to adapt to that market and provides promotions most other books don’t. The external analysis finds that there is little stopping us from breaking new ground, however our expenses may be a bit higher than most publishing groups.
Based on this analysis we believe the CT market may be ready for a new publishing source that broadcasts its own local voice in more than just an anthology or magazine, but in a growing selection of interesting and innovative trade books.
Lately the publishing industry has been on the upswing with a rate of growth estimated by the Association of American publishers to be around 9.9% (based on the 2002-2005 statistics) and the whole market represents around 25,100,000,000 in total sales.vi The public is consistent in buying books and most of these books are not best sellers as Barnes and Noble reported in 1998 that they only accounted for 3% of there sales and Gallop poles have found a majority of people do not care if a book is on the bestsellers list. Most publishing companies that are successful experience profits of 25% – 30%vii. Many corporate publishing companies about the same size as ours provide a return of around 8% to their investors on the stock market viii However most publishing companies have a failure rate of 20.1%.ix
Most of the competitors in our markets will be local bookstores and not the actual publishers themselves for two reasons. First the two surrounding metropolises (Boston and New York) have far more people and for the most part a greater population density, thus they have more publishing companies who market to those areas. Connecticut has very few non-university presses in the area, but it does have many consumers who would be willing to buy from another source. Second, the corporate bookstores of the region have attempted to dominate the market through major initial corporate spending on marketing campaigns and large store fronts such as the mall located Barnes and Nobles or Borders Books, these campaigns have in fact created a market that is dominated, but not unchallenged as on-line book stores are now accounting for ten percent of net trade book sales and book clubs also account for between five and ten percent in book sales.x
The BNE is continuously producing new books from authors within the area and we are not seeking to make every book a bestseller, instead we are seeking to make every sales campaign a success and every book will have a campaign. This is unlike many best selling novels like the Harry Potter series or the Eragon series and thus we will have more flexibility to spend our marketing budget in a manner which is best suited to our local market. This company houses its books in a warehouse in Hartford and we ship our books in from wherever we have found the best quality for the best price, from this warehouse we have many methods of distributing our products directly to the ultimate customers and we expect that our pull strategy will get us into the local and corporate book stores of the area in no time. Our management is also flexible and always ready to move from one position to another which keeps us from having to increase our employment budgets by reducing or eliminating the need for temporary or part-time positions.
In Connecticut there are about 3,500,000 people and we are seeking to market to about 270,000 of them. Of the 3,500,000 only about 2,500,000 are over the age of 18 and about 441,000 are over the age of 65, we will be targeting the group between 18-65 year olds which leaves us with about 2,000,000 potential customers. Most of our customers are high school educated 87.9%, but only about 35% have graduated college. The average salary of these consumers is about 34,000 and nearly 1,000,000 of the homes in Connecticut are occupied by their ownersxi.
These statistics mean several things; first we have to sell to about one out of every four people we advertise to. Second we must be advertising directly to home owners so our message is accepted among the masses of Connecticut. Finally because of the many different educational backgrounds of our consumers the five books we produce each week will each have a theme relating to its specific target audience based on their educational and social status.
Each book also includes a final page which can be mailed back to us at no charge to the customer. This customer evaluation sheet basically rates the consumers experience and allows them another venue (outside of our website or call center) of which they can communicate the types of books they would like to read directly to us. We use this feed back to help mold and design the topics or concepts of our authors creations.
5. Market Product Analysis
Breakdown of Organizational Markets for The BNE Publishing Company.
U. S. Region, Northeast, specifically Connecticut
Metropolitan area; Hartford
Density, Urban, Suburban, (CT has on average about 700 people for every square mile. )
NAICS code = 511130, Book Publishing, ###### Retail Book Stores, ###### Book Clubs
NAICS sector = 31250, Adult Trade Books )
Number of employees, 1-99; 1,000-4,999
Number of Locations 1-9; 500-999; 1000 and over
Points Of Difference
Our company is new and unique in many ways; we will be contacting consumers directly at their homes and during author performances. We will also be donating half of our money to charity and be using local Connecticut and New England authors only. Our mutual fund of charities is the biggest point of separation from our competitors. This generosity creates a lot of public relation promotions as well as providing a logical and emotional appeal to our customers. Finally, we will have access to the newest technologies and best publishing deals as we have no previous contacts and we need all new equipment to start the company with.
Currently there are almost no publishing companies using the pull strategy to attract consumers, however at the BNE publishing company we do just that. We pull the consumers in with books they like authors they know (perhaps personally) and especially a humanitarian effort that makes it all worthwhile.
6. Marketing Program
In this section the four element of the marketing mix (product, price, place and promotion) are used to express how we will convey our message. This program is the basis of how we will sell our books and enter the evoked set of the consumers we are targeting.
We will begin our company by offering trade books, the four specific types of trade books we offer are adult or young adult novels, poetry and short story collections, graphic novels and anthologies. These books will be printed on the most cost effective material as possible which often tends to be recycled newspaper, however we will spend more money on our ink to make sure it can with stand some water and not run. Most of our books will be paperback however if we have many requests for hardcover we will be willing to run additional printings of the book. Every book will come with a 100% money back guarantee and if for any reason a consumer feels unhappy with a product of ours we instruct them to please send the product back in it original package with receipt and we will refund their purchase.
Every week we will be printing five new books and in this way our inventories and selections will continue to grow and encourage customers to come back and shop with us again and again. We will also include customer surveys within every book so we can constantly keep apprised of our consumers shopping habits and reading values. Our anthologies will actually be snippets from other books we have already published so they will cost us nothing to write and they will serve as a valuable promotional tool for older books we are not currently promoting
Our books will be priced based on their length, content and type and we average around fifteen dollars a book. This is a bit more than most publishing companies usually charge, however people in Connecticut make more than others thus they can afford to pay more and our humanitarian drive will give consumers many appeals and reasons to buy it any way. Here is a list of our planned prices based on the type of book
- Young /Adult Fiction Novels— $9.00-$18.00
- Short Story /Poetry Collections— $9.00- $12.00
- Graphic Novels— $8.00-$15.00
- Anthologies— $20.00
Our promotions will be working to achieve a pull of consumers into the stores in an effort to get our products into the retail market. Currently we will be operating with four of the promotional elements to achieve this pull effect. The elements and specifics of those elements are
- Personal Selling through grassroots canvassing and book reading or signing events.
- Advertising, in local papers, on radio shows and even in popular magazines.
- Direct Marketing through e-mail and telemarketing campaigns.
- Public Relations through book reviews and interviews with the authors. News and other reports mentioning our chartable donations.
It is important to note that our canvassers will actually be getting paid by the hour and not on commission as it would be difficult for them to make money on commission selling books, but the point of their canvassing is not necessarily to sell books, but rather to create interest in the company and our products.
And we will contact our consumers using a sales pitch such as this one
- Hi, my name is Michael and I am from the Brandon Nicholas Eza or BNE Publishing Company. We’re out here today working to help promote an author from this area and raise money for a number of charities at the same time.
- Would you be interested in seeing a copy of this author’s book or perhaps hearing a bit more about our organization?
Our books will be housed in our warehouse from there we will bring or send our books directly to the consumers using trucks, shipping services, or canvassers. Our venues will be specifically our web page, our call center, our events (such as book reading or signings) and local and corporate retail book stores. We understand that there may eventually be other retail areas to expand into such as shopping or department stores. We currently use shipping services for all our deliveries to ultimate customers, but as our sales increase we may want to analyze the cost and benefits of delivering our books through our own services for local orders.
7. Financial Data and Projections
Past Sales revenue
(Please refer to graph 1 of the appendix)
In this graph we are showing a prediction of how we think we will do over the years compared to how other publishing companies selling books and similar items did. The graph is showing how well the company did with their sales, and then we predicted how we think we will do compared to them with new complications and other things added in.
(please refer to graph 2)
We think that we will get better at coming up with promotions and ways to get our books out there to the public. So our sales will increase for the most part, hoping that there are no major complications that arise.
Five Year Projections
All these units are in increments of 1000.
Actual year 1 year 2 year 3 year 4 year 5
Financial Element 2007 2008 2009 2010 2011 2012
Books sold 650
Net Sales $10,000
Gross Profit $3,000
Operating profit (loss)
This chart is predicting how many books we think we will sell over the next five years and how much money we will make from selling those books. All the numbers are based off how many we actually sell but they are also going to depend on any price changes we might have over the years and things we invest our money in like marketing strategies.
President & CEO- Mike is in charge because it was his idea and he went with it.
- Finalizes all financial and operations ideas.
- Everyone else in the group works under him and goes by him.
- Also has a few people working under him in various departments with other work such as
CFO (or something along those lines)- Jackie is in charge because she is working with the numbers.
- Keeps track of financial statements, the status of the company’s profits, costs, and anything else that has to do with cash flowing in and out of the business.
- May have another person working for her to help assist with this (part-time worker?)
- Also, reports all data on how company is performing to Mike and he gives the go ahead to any changes needed to be made.
Marketing Director- Nick is in charge making all marketing decisions.
- Brainstorms possible ideas and ways to get product in market that are unique.
- Keeps track of all marketing cost and reports them to Jackie, who then reports them to Mike in statement format.
- Has a few employees working under him helping with marketing strategies and matching certain types of books with their target markets.
Productions & Warehouse Manager- Bryant is in charge of productions and keeping track of raw materials.
- Supervises the production of books.
- Has a few employees working under him that actually assist in the making of the books.
- Keeps track of employees and understand how they feel and get inside info on to what could make productions run smoother.
- Has another person under him that works the shipping and receiving department of the company.
- Makes sure everything is shipped to proper places, and make sure that all materials or other things arrive on time.
Sales Manger- ?
- Monitors sales associates work ethics and also contributes help to the possible ways to improve sales
- Approves sales associates ideas to raise sales
- Grants trips to book readings, trips to market products, etc.
– Reports all revenues and expenses in sales departments to CFO (Jackie)
- Shipping & Receiving- tracks orders and makes sure things are on time. Also keep track of all incoming inventory from receiving. (works for Bryant)
- Writers- hired relatively cheap to write actually stories or whatever they are writing. (works for Bryant)
- Sales Associates- Go on business trips, make calls, and other ways to get possible sales. Make a small salary plus a percentage of sales that individual makes. (work under Nick in marketing)
- Receptionist- Works in front office answering calls for employees or connecting outside people to President, CFO, Marketing, and Warehouse Supervisor and also works Call Center.
Call Center- If customers have question receptionist answers them somehow.
- Designer- Designs covers to books, web pages, fliers, or other advertising means.
- I don’t have any numbers so I can’t really work on a salary base.
- Sales associates should make less than avg. because they can also earn a 5% commission. – # can change if u think too big or small. Also, a way to get sales up, associates can go out and read books to children or audiences.
- People in major positions make most money obviously (up to you to decide how much), people in minor positions make less money, where sales associates make even less.
- People in major positions have authority to hire and fire personnel only after getting the go- ahead from President (Mike).
- Editors get paid based on a combo of how many books they produce, how well they sell, and how well they work.
- Designer gets a salary close to what sales associates get, but get a bonus if web pages get a lot of hits, or if they play a part in the increase of sales.
9 Implementation Plan
Introducing our products to new areas of the country will be an extremely challenging task and will undoubtedly require choosing certain books for certain demographics, and different parts of the country. This will be a vital step in maximizing our sales, and increasing our profits. For example, in the southern region of the country we would advertise and market books that dealt with more conservative topics, and had a significantly lower amount of taboo topics, since that are seems to have a taste for the more traditional. In such areas as New York City, or Boston we have the opportunity to market books with broader ideas. Cities like these have many more forums for ideas than other areas and will tolerate the sale of such books with different ideas, thereby increasing our profits.
This method of marketing and sales will be strictly monitored to make sure we are maximizing our sales by using this method. Obviously, if this method does not seem to be working we will re-think our strategy and try again. As we sell our books, we also will evaluate whether or not to expand our operation to new regional centers to maximize our productivity in these new areas.
10. Evaluation and Control
The BNE Company will constantly be keeping records of our sales for the next year in addition to this we will be using our customer evaluation sheets to update our products and create customer oriented designs. Our web page design and accessibility will be necessary to ensure that consumers can shop our products since we will not be in a store front upon our entry into the Connecticut market. We expect that by purchasing our warehouse and trucks rather than renting we will save a significant amount on the following years budget, it will be methods such as these which help our company grow.
i http://www.publishers.org/industry/index.cfm, Tina Jordan, Association of American Publishers.
ii http://www.census.gov/prod/ec02/ec0251i03.pdf, U.S. Census Bureau, 2002 Economic Census.
iii BCG Matrix developed by Boston Consulting Firm, statistics from http://www.publishers.org/industry/index.cfm, Tina Jordan, Association of American Publishers.
iv Equation is based on Total Revenue= Unit Price * Units Sold, Marketing, The Core, Kerin, Hartley, Rudelius, c. 2004
v Based on the 80/20 rule from , Marketing, The Core, Kerin, Hartley, Rudelius, c. 2004
vi Estimated Book Publishing Industry Net Sales, Management Practices Inc., http://www.publishers.org/industry/2005_S1FINAL.pdf
vii Appendix Graph 3 from www.bizstats.com.
viii Appendix Graph 4 from www.bizstats.com
ix Graph is not included but the information is from www.bizstats.com.
x http://www.census.gov/prod/ec02/ec0251i03.pdf, U.S. Census Bureau, 2002 Economic
xi US Census Bureau Fact Sheet http://factfinder.census.gov/servlet/ACSSAFFFacts?_event=&geo_id=04000US09&_geoContext=01000US%7C04000US09&_street=&_county=&_cityTown=&_state=04000US09&_zip=&_lang=en&_sse=on&ActiveGeoDiv=&_useEV=&pctxt=fph&pgsl=040&_submenuId=factsheet_1&ds_name=null&_ci_nbr=null&qr_name=null®=null%3Anull&_keyword=&_industry=