IMM MAG

Business Model Canvas

An organization serves one or more customer segments (CS). It seeks to solve customer problems and satisfy customer needs with value propositions (VP) which are delivered to customers through communication, distribution, and sales channels (CH). Customer relationships (CR) are established and maintained with each customer segment. Revenue streams (R$) result from value propositions successfully offered to customers. Key resources (KR) are the assets required to offer and deliver the previously described elements, by performing a number of key activities (KA). Some activities are outsourced and some resources are acquired outside of the enterprise. These are key partnerships (KP). The business model elements result in the cost structure (C$).

Project Proposal

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SUMMARY
Customer Segments
Emerging independent musicians Fans of independent musicians (mobile) Fans of independent musicians (print)

Value Propositions
Publicity for artists Entertaining and informative content Choices of content delivery

Channels
Awareness via Social Media, MusicXray, and Street Teams Purchase via MXr/Web/Mobile Delivery via SM, Web, mobile, email, mail

Customer Relationships
Personal assistant via SM/Web/Mobile Auto - Services via MXr/HPMag/PayPal/SonicBids

Revenue Streams
Music submissions (asset sale) Print version of magazine (asset & subscription) Mobile app of content (asset & subscription) Advertising (asset & subscription) Website (brand) Street Teams / Sales Publish (web/print/mobile) Broadcast MusicXray SonicBid

Key Resources
Music Content Editor (Editor in Chief) Writer(s) / Mobile Developer

Key Activities
Interview / Edit Organize content

Key Partners
1and1 (web hosting) HPMagCloud (printing) PayPal

Cost Structure
All elements of this business model Every single one

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Project Proposal

THE TEAM
Management Prole
Ced 1 - Music Content Editor/Coordinator Jenny - Music Content Writer/Reviews Janet - Music Content Writer/Industry Insights Samantha - Music Content Writer/Interviews

Why Are We a Winning Team

We each have our own endeavors and vocations outside of immMag. We come together to combine music related content that entertains, educates, and inspires others in the independent community. List of accomplishments

THE BUSINESS MODEL

Vision, Mission, and Values
immMagazine is directed at independent musicians at all levels of business throughout the US, Canada, Australia, and The UK. The management of Group Publishing is targeting a total combined circulation of "immMagazine" of 45,000 in year one, increasing to 420,000 by the end of year three. The magazine will be published monthly with increased press runs throughout the rst three years. Sample distribution, organizational sales, and direct mail to targeted lists of artists will be utilized to build subscriptions. The direct marketing of immMag mobile apps will be implemented through its web and magazine readership base.

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Publishing is a high prot and high margin business. The key to success is successful marketing. FerrellCommMedia Group has a highly focused multi-dimensional sales and marketing plan to build its total circulation base quickly. Successful execution of The Group's plan will produce sales revenues of $45 thousand in year one, $1.2 thousand in year two, and $4.2 thousand in year three. Net prot will increase steadily over the next three years. The highlights of the business plan are illustrated in the following chart. Sales, margins, and net prot increase each year. The lowest margins occur in year one, reecting the marketing costs of building the circulation base.

How Our Business Model Works
see above

Value Proposition
Publicity for independent musicians Music business tips for independent musicians Music discovery and entertainment for independent music fans Feedback outlet for independent music fans Choices of content delivery and/or consumption

Target Markets
United States, Canada, Australia, and The UK 24-58 year old musicians who treat their music as a business Fans of independent musicians who want to give feedback and be appreciated

Marketing Plan
Our strategy is based on serving a clearly dened niche market well. By having an identiable market with available lists and related memberships, the management of The Group believes we can exceed publishing industry standards for conversion of

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potential subscribers. Committed entrepreneurial-minded independent musicians are a passionate and loyal clientele. A thirst exists for the published periodical product that "immMagazine" will provide. The task is to reach and inform the target market. The strategy is to combine sampling, direct mail, and group membership solicitation to build circulation through both subscriptions and mobile/tablet distribution. Multichannel distribution principles will be employed. Each has a differing margin structure but the combination will maximize the potential reach of the magazine. Marketing Strategy: New subscriptions are both sample and media based. Sampling will be done to both social media followers and to mailing lists. Sample runs will be: (x number of) issues on the rst and second runs, (y number of) issues on the second and third runs, and (z number of) issues on the fth and sixth issues of (issue name and/or number). All cost associated with these sampling programs will be included in the advertising and promotion budgets for those months. A total of (x amount of dollars) will be spent on email and/or direct mailed sampling geared to subscription. All sales projections through this multi-channel approach will reect the different pricing and margin considerations pertinent to each. Distribution Strategy Distribution of magazines through retail channels are projected at retail less (x%). Subscriptions through organizations are projected at list less (x%). All direct sales are booked at full revenue. Cost of product is deducted for 6 issues per year. Fulllment costs are expensed. Future sales are planned directly over the internet from the imm website. Strategic Alliances The strategic alliance with Scout66, Indie Music Bus, and RockMeBabyTV holds great potential. (list plans between each partner) Promotion Strategy In addition to advertising, direct mail, and media executions, public relations exposure will benet magazine circulation signicantly. (more info)

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 Pricing Strategy The "Artists In Business" magazine will sell for $4.99 per single issue (on the newsstand). A one-year subscription is $24.99 (delivered bi-monthly) A two year subscription is $44.99 (delivered bi-monthly) Sales Strategy Our combined sales strategy of sampling, direct mail, and organizations will result in the following rst year sales goals: 90,000 one-year subscriptions. 50,000 one-year subscriptions through organizations. 10,000 two-year subscriptions. Sales Forecast The following table and chart presents specic sales forecasts by product, by month, over the rst year of sales development. Years two and three are cumulative totals only. All sales project the relevant unit cost and margin differences to reect discounts, commissions, and revenue splits. Discount on ad revenue is 15% agency commission and 20% sales commission for a total of 35%. All product costs for subscriptions are based on $.40 per issue--6 issues for one year, 12 issues for two years.

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