24h Online Advertising Joint Stock Company was born in 2004, its main business activities are to advertise and to provide electronic information. According to a survey by Nielsen market research firm performed on a large number of internet access on HCMC and Hanoi in January 8.2011, 43% of Vietnam’s daily internet users visit the page of 24h company, 38% visit VnExpress, 32% visit Dan Tri and 16% visit Vietnamnet. 24h has the biggest number of daily visitors, which is proportional to its advertising revenue. 24h company stated that they had 2,000 customers with more than 120 billion revenue.
One of the columns in the company’s website attracted the attention of most young internet users is about movie stars. In 2012, in order to expand business and market share for the youth in the country, 24h decided to publish MOVIESTAR magazine, which would revolve around famous people in the field of film, music, etc. The magazine would be published in print and digital version in this coming June.
To obtain higher sales, the company needs a potential marketing plan for this magazine. This marketing plan is to identify the strengths and weaknesses of, as well as opportunities and threats for, the upcoming magazine. Based on the information identified, 24h Company determines an appropriate marketing strategy about price, promotion, place and product. The company also sets out specific objectives for its marketing activities. Finally, it provides simple mentation and control of plan.
Founded in 2004, 24h Online Advertising Joint Stock Company has a big reputation in Vietnam entertainment market, especially in the field of information gate. Therefore, the number of existing customers accessing to the company’s website is quite large. The release of MOVIE STAR magazine has met the real needs of the market. According to Euro monitor International, nowadays, the youth is particularly interested in celebrities and regards them as exemplary models. Thereby, the magazine’s potential is very positive. Source: Euromonitor International Consumer Survey – Global Youth
Our targeted customers are women from 14 to 35 years old. They account for up to 20% Vietnam’s population. This is a relatively high ratio. With the printing magazine, we will publish 125,000 products to sell in the market with an average price is 20,000 VND per unit in the first. Therefore, the forecast sales of the first year is 125,000 * 20,000 = 2,500,000,000 VND. We would like to sell 500,000 units of those in the digital editors at the price of 10,000 VND. Hence, the forecast sales of digital editors is 500,000 * 10,000 = 5,000,000,000 VND. We estimated the fixed cost is 2,000,000,000 VND. The variable cost is 3,000,000,000 VND.
The total cost is 5,000,000,000 VND. Forecast Profitability We have break- even volume = 5,000,000,000/ 15,000 = 333,000 units. It means that 24h Company will have profit if the sales volume exceeds 333,000 units Action program The MOVIE STAR magazine will be introduced in June. Following are summaries of the action programs we will apply during the first 12 months to achieve our objectives.
May: we will expand our distribution channels and check the entire magazine and its content before introducing them in December. We need to start our advertising campaign on mass media (announce the appearance of our new magazine). June: we will start selling our magazine to the market. We still need to expand our distribution in this month. Advertising activities need to go on often. July: this is the time for us to research about our customers’ attitude with MOVIE STAR for improving the magazine. August: we will do our public relations plan that organizes the special events. Moreover, our research activities will have to go on. September: Discount strategy for reseller is conducted to boost up market share. Advertising activities and research will go on. From October: we will continue advertising campaign and research customer demand to prepare publishing other product lines.
From July, we will develop our research activities to know customers’ attitude about our magazine. We need to know clearly their reaction with our magazine (about design, information, price, content, and quality) to decide our next production. We should arrange meetings with marketing department and carry out surveys to assess brand awareness. The goal is to raise customers’ awareness.
Moreover, our promotional activities need to be taken care of to make customers satisfied. We can survey through email or on street to find out how popular we are; we can also examine quality controls and customer services. Our purpose is to improve customer relationship. In addition, arranging monthly meeting with accounting department to evaluate sales and profit figures, review our cost are necessary and have to be carried out. We need to make sure that our sales revenue will grow gradually through months. From the information collected, we will be able to know whether our market share is growing or not.