‘Capital ‘ is a freshly designed concern magazine of Prisma Presse, which has bulk of its magazines, related to adult females sections. The instance deals with the selling research and deductions related to the launch of ‘Capital ‘ .
The study ab initio starts with a general debut about Prisma Presse followed by its organisation construction along with the mark market section. Then the 4 Ps of selling and PEST factors of Prisma Presse with regard to ‘Capital ‘ are discussed.
Further a SWOT analysis, chance and fiscal analysis for Prisma Presse is done to understand the prevailing state of affairs. The options – whether to establish the ‘Capital ‘ or non is discussed along with its advantages and disadvantages and so the recommendation is given for Mr. Weiss to establish the magazine in September 1991.
Prisma Presse is a Gallic publication company founded in the twelvemonth 1978 in Paris by Mr.Alex Ganz. This is a subordinate company of Gruner+ Jahr which itself is a subordinate of the multimedia Bertelsmann group.
Prisma Presse, the 2nd largest magazine publishing house in France has 8 magazine under its control of which 6 were launched and 2 were acquired. Every magazine is targeted to function a unique/different market sections and it has been a market leader with favourable industry norm. Prisma Presse believed in distinction and readers were given the precedence over advertizers. It besides has a end – ‘to establish a new magazine every 18 months ‘ .
The organisation construction is based on each magazine – merchandise orientation at the broader/higher degree. The president followed by the executive editor/ director who can be responsible for 2 magazines at a clip. Then the lower degree employees, who can work merely for one magazine at a clip, organize the skeleton. There are many degrees of hierarchy. The executive manager is followed by the editor-in head who is responsible for the column policies. Each magazine besides has sections like marketing research, journalist squad, advertisement, art squad, publicity and distribution. Some activities like certification, picture taking, and printing are outsourced. So the theoretical account follows functional orientation at lower and average degree therefore organizing a intercrossed organisation construction.
Capital – Target Section:
Potential concern magazine reader
Senior and in-between directors
Top non-business professional
Entry degree directors
It is to be noted that out of the 4.8 million possible population, merely 2.16 million really read concern magazines in the predating 1 twelvemonth. The mark section for Capital is the 1.5 million senior and in-between directors. And based on the past 1 twelvemonth informations, merely 885 1000s were readers of Business magazine.
4 P ‘s and PEST factors:
Merchandise: Prisma Presse has merchandises under travel, adult females, telecasting, nutrient and famous persons life classs. ‘Capital ‘ ( if launched ) would be its first concern magazine in France. ( Exhibit 2 )
Topographic point: The magazine is targeted to be sold merely in France ( Paris – 40 % and remainder of France – 60 % ) . The medium of merchandising is through subscription or from newsstands on hebdomadal, bi-weekly or monthly footing.
Monetary value: The pricing scheme depends on the figure of executive readers, portion of the executive readers, figure of purchasers and the advertizers. There is a difference in the subscription pricing ( higher with high price reductions ) and newsstand pricing.
Promotion: This depends on the advertisement scheme which is designed based on the focal point group.
Political and Economicss: There is a diminution in the Business magazine market portion in footings of volume due to the Gulf war and the advertisement issues.
Sociable: The magazine should be in the state ‘s local linguistic communication and should besides be in relation to the state ‘s civilization and gustatory sensation and non a mere interlingual rendition of the Germany ‘s version.
Technological: The computing machine based publication system is to be used for the first clip which helps in easy rectification of the inside informations ensuing in cheaper and less clip ingestion merchandise.
Axel Ganz, the cardinal strength of Prisma Presse – known as the “ magazine alchemist ” and “ adult male with the Midas touch. ”
Strong fiscal place, Leader in the market and good R & A ; D squad
Beliefs in sustainable growing based on invention
Prisma Presse concentrates on reader ‘s perspective – unusual in France.
Magazine layouts are easy to read – shorter articles, words and sentences, simple rubrics with alone images.
Capital – good known direction squad and is successful in Germany.
Focus group surprised and happy with the new design.
New to concern magazine section.
Concentration on tight cost control which may make a sense of meagerness.
Company lost $ 3.6 ( F2 ) billion turnover from 1990-1991.
No clear individuality for Capital.
Cost of the failed Capital paradigms before establishing the magazine.
Isolation from Germany ‘Capital ‘ squad – deficiency of interaction
Recruitment issues – determination and developing new journalists on Prisma Presse ‘s civilization and rules
The name “ Capital ” has a negative position in France.
Disconnected market – many little participants
No clear market leader
Customer ‘s demand non met
If Capital published on the same twenty-four hours as the other magazines so 120,000 purchasers may purchase it in newsstand.
Business magazine section sing 20 % diminution in the circulation, advertisement gross and volume.
Competition from other concern magazines in the market.
Market Size: A Circulation ( Exhibit 2 )
( in 1000s )
Ca M’interesse -350
Cuisine Actuelle -350
Gudie Cuisine -230
Female Actuelle -1,800
Tele Loisiers – 1,220
Growth rate of major concern magazines: A ( Exhibit 6, 7 )
( -6 % + -3 % + -4 % + -5 % + 7 % + 42 % + 64 % ) / 7 =
( -18 % + -23 % + -7 % + 84 % + 13 % + 56 % + 55 % ) / 7 =
Competition: A ( Exhibit 6,7 )
( in 1000000s )
Le Nouvel Economiste
Science & A ; Vie Economie
( 74/5.6 ) = $ 13.21
( 56/5.6 ) = $ 10
( 25/5.6 ) = $ 4.46
( 274/5.6 ) = $ 48.93
( 184/5.6 ) = $ 32.86
( 17/5.6 ) = $ 3.04
Estimated net income
Dependence of Rivals:
Ad gross as a % of entire gross gross
If a company has higher market portion so the rival ‘s dependence will besides increase.
Contribution Analysis: A ( Exhibit 8 )
( 74/5.6 ) =
( 56/5.6 ) =
( 25/5.6 ) =
( 274/5.6 ) =
( 184/5.6 ) =
( 17/5.6 ) =
( 2.60/5.6 ) =
( 1.30/5.6 ) =
( 2.40/5.6 ) =
Note: Rival 1: L’Expansion ; Competitor 2: Le Nouvel Economiste ; Competitor 3: Science & A ; Vie Economie
Knowledge in the magazine industry.A
No clear market leader.A
Dressed ore on the newsstand gross revenues volume – a new approach.A
Content is different from other bing concern magazines in the market.A
Positive feedback of the focal point groups.A
Axel anticipation – diminution in ad grosss is non due to miss of demand but due to unsatisfactory offerings.
A 20 per centum lessening of advertizement revenues.A
Costss of Research and development.A
Costss of employment.A
Lack of journalists in concern area.A
Inexperience in concern magazines.A
Based on the above analysis it is clear that the undertaking will be successful if it continues to concentrate on the column construction and advanced contents. The addition in the figure of pages for people, service subjects and life style, leisure and concern travel has made concern gratifying to the readers. Though the individuality of the magazine is non clear, Capital is seen as the ‘hybrid ‘ version- mix of all required and expected concern inside informations and therefore obtained a positive response.
Therefore it can be decided that Mr. Weiss should establish ‘Capital ‘ as a portion of Prisma Presse concern section in September 1991 all over the France.