Currently, the market for both print and digital media is actively growing and developing, which is especially relevant for magazines. More specifically, revenue in the segment of digital newspapers and magazines is expected to reach $39,012bn in 2022 (Digital newspapers & magazines, n.d). It is also important that most of the revenue is projected to be generated in the US, and the number of global users will reach 1,882.6bn by 2026 (Digital newspapers & magazines, n.d). Thus, the size of the digital media market is expected to grow rapidly.
Concerning print media, especially magazines, active development is also expected. It is especially important in this regard to pay attention to the growing popularity of the segment of mobile and tablet applications for media. The market size of the magazines and periodicals segment in 2022 will reach $21.7bn (Magazine & periodical publishing, 2022). However, from 2022 to 2027, an active decline in market size is expected, which will reach more than 5% per year (Magazine & periodical publishing, 2022). In 2022, the market size is also expected to decrease by almost 2% (Magazine & periodical publishing, 2022). In this case, businesses should pay special attention to digital media resources, as well as mobile platforms.
Market target and business segmentation are digital media publications and magazines. In particular, the company should focus on creating mobile platforms for publishing zines, as this market is growing rapidly. The size of the print media market is actively shrinking, which makes this segment secondary in importance. Thus, businesses need to focus specifically on product diversification within various digital platforms and printed publishing. This strategy will allow actively develop in the main segment, as well as capture part of the adjacent one.
Product: The main product of the business is the zine, which will be distributed through the website and mobile platforms. The main differential advantage of the product is the ability to publish materials by amateur writers with a professional editing service. Additionally, the creation of thematic communities will be available within the zine. This aspect brings an additional advantage in the form of the possibility of social interaction within the platform.
Price: Business implies the need to set a price for a product higher than the market average. This fact is explained by the need to pay the creators of the platform, as well as editors. In this case, the payment will be set as a temporary membership on the platform to ensure a constant flow of project funding. This strategy also distinguishes the product from its competitors, which charge relatively low prices for digital media products.
Promotion: Within the framework of the project, there is no need to hire sales associates since the process of selling a product can be automated. The advertising budget must be set at around 20% of the total project at the initial stage. This amount will allow purchasing advertising from other market players, as well as attract several influencers. At the initial stage, it is necessary to use sales promotions to attract the first customers, which may include the provision of additional services and discounts. The publicity and goodwill of the project can be promoted through active advertising of the mission of the platform and the articulation of goals to attract young authors.
Distribution: Distribution of the product will be made through a direct channel, which eliminates the need for intermediaries. This choice is typical for digital products with their platforms. Thus, distribution will be carried out at the level of the service provider. However, the print version of the zine will require the involvement of retailers.
References
Digital newspapers & magazines. (n.d). Statista. Web.
Magazine & periodical publishing in the US – Market size 2005–2027. (2022). IBISWorld. Web.