magazine business plan assignment #3 Morgan Fraser Richard Fukahara

magazine business
plan assignment #3
Morgan Fraser
Richard Fukahara
Megan Heesterman
Alex Ng
Andrew Ou
Emily Taylor
Joanne Tran
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ADDITIONAL MATERIAL / / / / / / / / / / / / / / / / / / pg. 10
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Kodiak is a privately owned, for-profit cultural magazine with a commitment to local business, destination tourism,
environmentalism and most importantly – west coast board sports. Our private ownership enables us to only
publish content that we wholeheartedly believe our audience will enjoy.
We are solidly Canadian in all aspects of our business: ownership, audience, mandate, content and production. We
are funded by a combination of our paid circulation, bulk sales to our network of corporate partners, advertising
sales, Canadian government grants, ancillary revenue efforts and in kind contributions. Our niche audience of west
coast boarders and our intimate knowledge of them and their interests make us a valuable business partner and an
engaging, current and one-of-a-kind magazine.
As a magazine that seeks to be an integral member and cultural leader for our niche audience of west coast
boarders, we at Kodiak spend a necessarily large amount of time, effort and money on marketing. We have
identified our audience; formed our online marketing plan of daily, monthly and one-time strategies; outlined a print
marketing plan that includes free, low, medium and high cost options; and are planning to be attendees and
organizers of many boarding-related events.
Our Audience
Our extensive demographic (PMB) and psychographic (audience surveying) research informs us that our Kodiak
reader is as follows:
One of 180,000 British Columbian high school and/or university graduates, aged 18-34, with an average
household income of over $100,000
An avid boarder (surf and/or snow), who practiced their sport 3-9 times in the past 12 months
They board as an escape from daily life, as a way to relax, to challenge themselves, and to interact with
other boarders in their community
They pay extreme attention to the quality, style and function of their gear (which they spend an
incredible amount of money on), as it represents their identity as a boarder, and keeps them
comfortable, fashionable and safe during their adventures
Our primary marketing goal is to gain maximum exposure to our audience through directly relative and correlated
retail outlets, websites, apps and accommodations.
Print Marketing Plan:
Free/Low Cost
The following marketing efforts have no or little direct cost, and instead operate on an exchange model, where we
exchange discounted advertising or a deeper discount on sellable copies to retailers for promotional discounts to
their outlets, resorts or for their services.
Incentives: discounts on gear, season’s passes and/or accommodations for current subscribers (proof of
subscription purchase would be shown at select locations for a discount)
Copy free with purchase: in select high-traffic corporate partner outlets we will give copies free to
be included with purchases over $50.00, as well as incentive online marketing to the retailer for
distributing. (This will attract seasoned boarders upgrading equipment as well as those new to the sport,
as they are purchasing new gear and will want to know more about the sport)
“Fundraiser” issue: include content focused on environmentally oriented charities and industryrelevant non-profits in order to increase exposure and receive endorsements from the organizations
Exposure: our Burton-partnered Kodiak design contest (see “Alternate revenue strategies” for details)
will result in Burton boards being given away as prizes/sold by Burton outlets that are designed with our
Medium/High Cost
The following marketing efforts involve a direct cost and have been factored into our budget (see P&L) under
“Marketing expenses”, “Tradeshow/event expenses” and “Shows and events per year”. Our retailer recruitment
strategy, which is executed by our marketing and circulation departments, will be covered under “Circulation
strategy”, and the cost of this strategy is found under “Retailer recruitment” in the P&L. This portion of our plan
represents our long-term marketing strategy, as we would never execute all of these efforts in a single year.
Corporate partner strategy: the fact that our magazine is distributed in many high-traffic retail
outlets and resorts means a lot of exposure in areas that our audience frequents
First issue free: at our launch event we will give out physical copies of our first issue free; as well as
offer parts of our digital version online for free during first issue launch
Direct emailing/mailing: we will purchase emailing/mailing lists from key advertising brands like
Burton and from our corporate partners and include a discount code or contest incentive on the ad to
use when subscribing
Public relations: send out complimentary issues to famous boarders or identified leaders in the
boarding community in order to hopefully garner support and receive endorsements from them
Paid advertising: we will advertise our magazine in newspapers, tourism magazines, and on radio and
television stations local to prime BC boarding locations
Product placement: we will have our magazine present, being read or referenced in films or
television shows that have a character or theme that relates to boarding culture
Online Marketing Plan:
The following plan is divided into daily, monthly and one-time online marketing efforts that aim at promoting our
print and online magazine content. The majority of these efforts will be executed by interns with the latest
knowledge of social media and online marketing strategies (such as SEO, etc).
Website: our website will contain new videos daily (user and Kodiak staff generated), a social media
reel, a weekly blog by a featured member of the boarding community, website-specific articles and
coverage/a schedule of current boarding events on the west coast
Twitter: establish official hashtags and create a Twitter account and post relevant retweets, articles,
events and photos relating to boarding culture (incorporate hashtags as much as possible)
Facebook: create a Facebook page and post relevant photos, videos, comments and contests relating to
boarding culture
YouTube: create a YouTube account and use it to upload all videos that we feature on our website, so
that it gets continual updates and readers can subscribe
Pintrest: create a Pintrest account and post pins and repin things relating to boarding culture
Flickr: create a Flickr account that people can submit photos of their boarding experiences/lives to
Instagram: create an Instagram hashtag so that users can generate photos relating to boarding culture
and include your tag
Social media management: manage all accounts through Hootsuite to ease cross-media content
and post scheduling
SEO optimization: intern implementing SEO optimization techniques to increase website traffic from
search results
Analytics: intern continually experimenting and reporting on analytics of our website and social media
pages in order to optimize traffic, shares and page view duration
Photo contests: best user generated photos win incentive prizes (sponsored lift passes, etc.)
Paid online ads: purchase Facebook, Twitter and Google search engine ads that direct to our website
and social media pages
Social bookmarking sites: get on stumbleupon and to drive web traffic
Bloggers: Find popular bloggers (from the design or boarding communities) to write reviews on our
publication and design, and give them endorsements on our website in exchange
Kodiapp: mobile application that gives live updates on wave and snow conditions at key BC boarding
destinations, as well as a live feed of the online discussion (aggregated from website and social media) will
be useful to users and promote brand awareness/loyalty
Brand association: link our brand with top boarding brands like Burton in order to establish prestige
by linking our website to theirs and occasionally linking where to purchase their products within related
Kodiak’s circulation strategy reflects its commitment to building relationships with members and leaders in the west
coast boarding community. Our readers encounter our magazine in their favorite board shops, destination
accommodations, online and in their own mailboxes.
Based on our demographic research, our total potential audience of British Columbians who have snow- and/or
surf- boarded at least 3-9 times per year is 2.8% of British Columbia’s total population (4,500,000 approx.), or
180,000 people. We certainly do not expect that every single individual in this population will subscribe to our
magazine, so we make the modest projection of aiming to have 10% of this audience (1800 people) subscribe by
our third year of publishing.
Our subscription goals are 1000 subscribers in our first year, 2500 in our second year, and 6000 in our third year, at
a rate of $20.00 per year for four issues of Kodiak. We will acquire our subscribers from a multitude of sources. In
keeping with conservative spending and environmental conscientiousness, we avoid acquiring new subscribers
through physical mail outs and paid advertisements as much as possible. We instead focus on our website, email
campaigns, bind-in cards, trade shows and promotional events as means of attracting new subscribers (see P&L for
detail). We spend a lot each year on acquiring new subscribers and retaining our current ones (at an industry
standard rate of 65% conversion/renewal), but we also aim to make an industry standard of 15% of our revenue
from circulation by our third year.
Corporate Partners Strategy (bulk sales)
Our unique bulk sales strategy is a significant part of what drives our magazine’s revenue. We devote a small team
of highly skilled, paid staff (wages and travel) to continually seek out leaders in the boarding community (retailers,
accommodation sites and attraction locations) and create mutually beneficial partnerships with them. We dedicate
$1000 to acquiring each new partner, and $500 annually towards maintaining our relationship with our present
retail partners. Our projections for bulk sales/partnerships are as follows:
Year 1 (20 copies per issue, 4 issues per year, 50 corporate partners, for a total of 4000 bulk sales;
Year 2 (20 copies per issue, 4 issues per year, 100 corporate partners, for a total of 6000 bulk sales);
Year 3 (20 copies per issue, 4 issues per year, 250 corporate partners, for a total of 10,000 bulk sales)
Our corporate partners are more than just customers who purchase our magazines for a 50% discount; they are
co-creators in our vision, a connection to our readers, and contribute to our future direction. We frequently
engage in contests with them, in sponsorship opportunities and co-organized events that drive their business and
ours. Most partners will sell our magazine for its industry-standard cover price of $6.99 and receive 50% of the
profit. Although, we do offer the option of including the magazine free to their customers with large purchases, for
a discounted rate on advertising within the magazine.
Single Copy Sales
We at Kodiak have made a commitment to our west coast environment, and therefore have decided not to
participate in physical newsstand sales after our first year due to their incredible negative impact on the
environment. This strategy also aligns with our “insider community” vibe, as we do not cater to a mainstream
audience found in grocery and convenience stores. We are where the boarders are: in shops, in resorts, and online.
Internally, this helps reduce our circulation expenses significantly, making our magazine more financially viable.
However, we do sell single copies in verbatim tablet/digital format through virtual newsstands, as they are zerowaste and much more cost effective, and will be sold at an industry-standard rate of $6.99 per copy.
Online Distribution
For readers who only want to receive free online content, we also offer the option of subscribing to our website
updates via email for no charge. This option (and our website) will be promoted within our print magazine, where
there will be a QC code and link on these ads that will direct to a survey on our website. If readers fill out the
survey, they will be offered a chance to win one of our many contests, sponsored in part by our corporate
partners. This will enable us to collect more information on how readers interact with our print and online
products, as well as drive our website traffic (and thus subscriptions).
Events and Promotion
The following events are part of our larger subscription and marketing strategies, and have been factored into
expenses in the P&L under any line that mentions “Events” or “Tradeshows”.
Launch events
In our first year we will have a launch event concurrent with each of the four issues we publish, which will take
place in a relevant, high-traffic boarding venue. For example, in winter it would take place in Whistler Blackcomb
Mountain Lodge (Whistler), and in summer it would take place on Long Beach Lodge (Tofino). We will provide
food and drinks, supplemented by sponsors in exchange for discounted advertising. Musicians identified as popular
amongst our demographic (by researching boarding videos) would be hired to play at our event. A snow/surf
competition would also be integrated as part of the event, as well as many contest incentives for free merchandise
from our sponsors, subscriptions and free copies of the magazine, and our grand prize of our Kodiak surf and snow
boards (see “Alternate revenue strategy” section for detail).
Other events
Special event issue launch: Publish an issue featuring a large event like the X Games and promote
the magazine at the actual event
Coffee shop/pub promo events: free issues given out at promotion events in coffee shops and
pubs in prime boarding destinations
Tradeshows and competitions: we will attend surfing and snowboarding exhibitions and
competitions, and advertise, promote and sell our magazine at them through contests and incentives
Kodiak’s niche audience is of incredible value. As seen in the marketing and circulation sections of this plan, our
readership of west coast boarders has identifiable, consistent and established interests, brand awareness and high
expendable incomes. Our readers frequently encounter our magazines right in the heart of the marketplace – in
retail stores – so our endorsements to our advertisers are mere meters away from their readily available products.
The brands and products our readers use aren’t just objects; they’re part of their identities as west coast boarders.
Therefore, our business model relies more heavily on advertising income than other Canadian cultural publications
because, quite frankly, brands want ads on our pages.
The Numbers
In our first year, our ad-to-editorial ratio is the standard 40:60 because we understand that building relationships
with advertisers takes time. Our CPM in our first year is also a conservative $33.00 because we’re starting small
and want to stay realistic. We expect advertising to be 29% of our revenue in our first year, or $39 600, with the
expectation that this will grow as we do.
In our second year, our ad-to-editorial ratio rises to 50:50, because by now we have established some relationships
and are incorporating brand and retail partnerships more heavily into our marketing strategy. Our CPM will
increase with our circulation, to a rate of $53.00. We expect advertising to provide 41% of our revenue, or $150
368, as the static rate of government funding we will hopefully receive will no longer be enough to cover a
significant portion of our costs.
In our third year, our ad-to-editorial ratio will remain at 50:50, and our CPM will increase with our significantly
larger circulation and more established relationship with our readers, to a rate of $143.00, which is not uncommon
for a niche market magazine with an affluent, young readership that trusts the publication’s endorsements. We
expect ads to supply 55% of our revenue in Year 3, or $848 960.
The Concept
Kodiak is dedicated to providing our readers with quality content, which includes our selection of advertisers. We
will ensure that all ads and their associated corporations are relevant, excellent, ethical and aligned with our
editorial and visual concepts. Our advertisers will promote brands and products that fit with our audience’s
interests in fitness, nature, adventure and most importantly – boarding. We will support local BC businesses (board
shops, accommodations and tourism destinations) by providing opportunities for retail advertisers, while ensuring
that our readers know what brands are the best in their sport through national advertising.
The Advertisers
We have identified the following list of brands and stores as potential brand and retail advertisers that align with
Kodiak conceptually, visually and ethically:
The North Face*
Mountain Equipment Co-op*
Rome SDS
I/S Eyewear
Salomon rockette
onethirtythree, Courtenay, BC
West 49, Nanaimo, BC
Surface Board Shop,Victoria, BC
Snowcase Snowboards,Vancouver and Whistler, BC
Frozen Ocean,Vancouver, BC
West Coast Sports,Vancouver, BC
Live to Surf, Tofino, BC
Longbeach Surf Shop, Tofino, BC
Urban Alpine, Squamish, BC
Summit Sport, Whistler, BC
Mount Washington Alpine Resort, Courtenay, BC
Long Beach Lodge Resort, Tofino, BC
*Local Vancouver surf/snowboarder survey respondents of our psychographic research campaign reported preferring these
brands or already owning snow/surf gear by these brands.
Rate Card – Year 1 (2014)
Advertising Cost
Full page ad
Half page ad
1/3 page ad
*Note: Our cost for advertising pages increases as our audience and their loyalty increases.
The following rates for a full-page ad are as follows:Year 2 ($508);Year 3 ($2653). See P&L for detail.
Publication Schedule
Spring- Vol.01
1st March 2014
Summer- Vol.02
1st May 2014
Fall- Vol.03
1st Sept 2014
Winter- Vol.04
1st Dec 2014
Pub Date
Space Close
Art Deadline
Issue Highlights
snow-to-surf ratio
snow-to-surf ratio
snow-to-surf ratio
snow-to-surf ratio
Sample Ads with Visual Concept
See: Additional Advertising Material (pg. 10) for a selection of sample ads that convey the visuals that are aligned
with Kodiak’s visual concept.
Government Funding Opportunities
We plan to make $15,000 in government grants per year from a variety of Federal, Provincial and Municipal
sources. The funding we hope to receive will primarily be funding meant to support arts and culture organizations
and Canadian magazine publishers. Because of our magazine’s commitment to local business, destination tourism
and the environment, there is the potential for us also receiving funding from those categories as well. Note:
Eligibility for specific cases like ours applying to BIA/tourism/environment grants such as these was by consultation only.
The specific are grants we are eligible for are:
Canadian Heritage $2000+
Max: 1.5
Periodical Fund)
Nov 24 1. Minimum average subscription price of $12/year
Max: 75% of
Canada Council for (Demonstrat
the Arts
-ed need)
Mar 1
(Grants to Literary ~$2000+
and Art Magazines)
Private sector
DAM-magsMajority Canadian owned/controlled
Paid circulation
One 12-month interrupted cycle completed
Published at least 2 times per year
80% Canadian content
published at least two issues of the magazine
before applying for a grant and be committed to a www.canadacou
continuing magazine publishing program
have identified the target audience for the
magazine and developed an appropriate
distribution method to reach it
3. have a paid circulation of at least 40 percent of
the copies printed (except for electronic
4. have and honour a clear policy with respect to
the use of contributors’ writing and intellectual
5. be written principally in English, French or one of
Canada’s Aboriginal languages
6. be at least 75 percent Canadian-owned
7. be published at least twice a year
8. focus mainly on editorial content written or
created by Canadians
9. have a demonstrated editorial capability and
financial stability
10. focus mainly on previously unpublished material
11. have a print run of at least 500 copies per issue
(except for electronic magazines).
Canada Council for $5000+
the Arts
Mar 1
1. new magazines devoted to literature and the
(New Magazine
Seed grants of $5,000 or more will be awarded to writing/
the new magazines judged most deserving in
terms of literary and artistic potential
contemporary arts in Canada.
3. The eligibility criteria for this component are the
Canada Council for $15,000
the Arts (Strategic
Fund for
Mar 1
same as stated above, with the exception of the
following technical criteria: The publisher’s
average print run must be a minimum of 200
copies per issue (except for electronic magazines)
1. targets one-time initiatives that will produce
lasting results and foster the development of
strategies for broadening market access, sharing
resources, establishing partnerships, creating tools writing/
adapted to digital environments and developing ec12722735007
50% of
Foundation (Arts budget for
and Culture Grant) proposal
Mar 15
1. a professional arts or cultural organization based http://
Preference will be given to organizations that have grantid=314&r=
not received Arts and Culture funding from
Vancouver Foundation in the previous funding
in British Columbia
3. Preference will be given to projects with a new
initiative or work
4. Geographic & Regional – Organizations serving
The Arts Office
(City of North
Feb 25
communities throughout the province with
emphasis on regional collaborations
1. Groups that demonstrate a clear mission,
mandate and artistic vision
2. Groups that create and present work produced
primarily by local artists
3. Groups that operate year-round in a fiscally
responsible manner with a sound governance
4. Groups that demonstrate leadership, innovation
and collaboration in their artistic and community
engagement practices
5. Groups that provide opportunities for creative
Canada Summer
wage of 1-2
students for
a 4 month
Feb 28
sector development that include employment to
artists and creative sector workers
1. small businesses with 50 or fewer employees
2. desire to create summer work experiences for
students between the ages of 15 and 30
In Kind revenue projections
Kodiak intends to offer university student interns the opportunity to gain experience working for a Canadian
magazine in the following areas:
Social media management
App design and programming
Website content creation and
Research and writing projects
Fact-checking and copyediting
Design and photography projects
Media relations and marketing
Circulation and production
Advertising and sales
Canadian cultural business grant management
Business administration
Interns will work on 4 or 8 month projects, and will either be unpaid or will be supported by a Canadian Summer
Jobs grant (subject to funding). Projected in kind revenue is 13% of our gross revenue, or $17,419 in our first year.
This represents about five interns, working 20 hours per week, for four month terms.
Ancillary/alternate revenue activities:
Kickstarter: run a 40-day all-or-nothing campaign designed to raise $5000 with a focus on the artistic/
photography/design elements of the magazine; promoted on all online and social media platforms and
within print magazine well in advance; every donator over $1 gets the “Perk” of being entered into a prize
draw for a free year subscription; donators over $100 get entered into a prize draw for our Kodiak board
Indiegogo: run a 40-day campaign designed to raise $10,000 with a focus on the business/boarding culture
elements of the magazine; promoted on all online and social media platforms and within print magazine
well in advance; every donator over $1 gets the “Perk” of being entered into a prize draw for a free year
subscription; donators over $100 get entered into a prize draw for our Kodiak board
Branded, partnered surf and snow boards: (Cost: $4000 and the production of the prize boards)
Crowdsource the design of a surfboard and snowboard that are inspired by Kodiak’s branding and
Pay the winner of the crowdsourcing campaign and feature them in a full page article in our print
magazine and a full page article on our website with a link to their portfolio
Partner with a well known brand (Burton for snowboard, Sitka for surfboard) and create the
winning board
Use the board in major contests intended to boost subscription rates and raise funds
Website design: (Cost: $1000)
Percentage of the board, sold in Burton and Sitka retailers, goes towards Kodiak’s publication
Crowdsource the initial design of our website
Pay the winner and feature them in a sidebar of our magazine and a full page article on our
website with a link to their portfolio
App design: (Cost: $1000)
Crowdsource the initial design of our Kodiapp
Pay the winner and feature them in a sidebar of our magazine, a full page article on our website
with a link to their portfolio, and credit their name within the app
Alternate advertising techniques
Website advertisements: allow corporations that align with our mission and brand to advertise on
our website; primary source of complimentary/exchange advertising in sponsorship deals
Inserts: allow advertisers to produce inserts to be included in our print magazines, for a premium price
E-newsletter: available for subscription on our website; includes ads for sale to very specific regions
(example:Vancouver-only emailing list,Vancouver Island-only emailing list, etc.) which allows for more
targeted, efficient advertising.
Sponsorship: allow corporations to sponsor our events to align their brand with ours and connect
with our audience
Additional Advertising Material: sample ads with visual concept
This advertisement relates to
Kodiak’s visual concept with its
subdued colouring (especially use of
blues and purples) and west coast
imagery. The North Face would
benefit from having an ad like this in
Kodiak because it would blend
seamlessly in with the design of the
editorial content in the magazine.
Like the other advertisements
below, this ad is trying to sell a
product that would be used by the
primary audience of the magazine.
The abstract imagery used in this
advertisement relates to the artistic
and subtle point of view of Kodiak.
Instead of selling a product, Quiksilver
is selling their brand, which carries
products our audience could use all
year round.
This ad speaks to the minimalist
visuals of the magazine, using bold
but simple typography that lacks
decorative elements. Advertising the
brand, Burton is in tune with the
experiences our audience wants to
The softness and artistic perspective
of this Atomic ad aligns with the
visual essence of Kodiak. There is a
certain subtlety and cleverness
present in this ad that we believe
our audience would appreciate
when reading our magazine.
This Columbia advertisement is
selling the experience of adventure
in the greater outdoors, which our
magazine is also visually displays. The
type of photography used and the
calmness it exudes parallels the type
of photography that we intend to
use for the visuals of Kodiak.