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GLOW Beauty UK - Research and Concept Development

Business Model Presentation

Danielle Yates

on 10 December 2012

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Transcript of GLOW Beauty UK - Research and Concept Development

GLOW Beauty UK Business Model By Danielle Yates Research and Concept Development Structure GLOW Beauty UK Business Model Introduction
Competitive Advantage
Location and Environment
Business Team
Skills Required
Supply Chain
Legal Issues
Financial Considerations
Why will GLOW Succeed? Research Methodologies Primary and Secondary Research Primary Secondary GLOW Beauty UK The Concept Monthly Beauty and Health Publication
Targeting affluent 40-65+. Intends to connect to mature and prosperous market Digest tips, advice and best beauty buys
A luxurious and high quality publication GLOW speaks to the inner voice of every woman GLOW Beauty UK My Vision At NARS Cosmetics, I often discuss beauty concerns with the affluent ageing demographic... Research into
ageing demographic... Creating a Beauty Blog... GLOW Beauty UK Competitive Advantage Unique Selling Proposition Only beauty magazine to target 40+ affluent women

Acknowledges mature readers abiding to aging demographic

Represent largest % amongst readership Feel valued and less invisible! GLOW Beauty UK Competitive Advantage Unique Selling Proposition Displays higher, luxe quality
Modern overall design Future opportunities include:-
National branded events
‘GLOW’ Beauty Line GLOW Beauty UK Stable Legal System

Great Transport Connections

Hub for International Exports

Favourable Time Zones

Access to beauty and health brands and experts

Access to Make-up Stylists, Hair Stylists and Photographers

Wealthiest Region of UK

Access to variety of skilled staff
in field

GLOW competitors operate
in London Reality Start-up London Good location
= Credibility To minimum finance... Why London? ...start business in London home Initially I would hire

Art & Creative Director
Create visual aspects of magazine

Freelance Expert Contributors
To send content via email Location and Environment
of Business GLOW Beauty UK Location and Environment
of Business Why best
for GLOW? As Business
grows... ...office space will expand Shared Office Space
£114 + VAT per desk, per week
3 mins to Borough Tube Station
Central London
Fashion and Beauty Capital Borough,
London SE1 1NL Great Value

All inclusive price

Flexible - 1 month minimum stay

Expand office as business grows
1 desk = 1 employee

Professional Surroundings GLOW Beauty UK The Team Executive Editor Editorial Assistant Art/Creative
Director Advertising
Director Publisher Marketing
Director Finance
Director Circulation
Director Associate Publisher IT Technician Account Executive Freelance Researchers
Experts & Contributors Hired Staff Writers GLOW Beauty UK Team Skills Required Access to
Fashion Monitor
for Beauty/Health Brands &
PR Contacts Executive Editor Art & Creative Director Publisher Marketing Director Finance Director Selects writers, assigns stories, edits articles
Oversees all content of magazine Creates visuals, Cover Concepts, Layout & Quality of Print Controls business and commercial aspects
Ensure magazine is financially viable Handles Market Research and Gathers Statistics
Gains intelligence about potential advertisers
Plans brand events Contributor & Experts Provide specific expert content or research GLOW Beauty UK Consumer Needs and
Habits Towards Shopping 55% over 55s
50.2% Social Grade A
61.1% Social Grade C1
65.4% Divorced Women 80% of purchases from female consumer
46.6% aged 55-64 are spontaneous shoppers GLOW Beauty UK Distribution Newsagents Supermarkets Department Stores Subscriptions Online Subscriptions Direct Subscriptions PO BOX Address
= £230 p. annum Free to list/advertise
Cost per sale basis GLOW Beauty UK Supply Chain GLOW Beauty UK Legal Issues GLOW Beauty UK Financial Considerations
Funding the Business GLOW Beauty UK Financial Considerations
Business Revenue GLOW Beauty UK Conclusion of Financial Aspects GLOW Beauty UK Why will GLOW succeed? GLOW Beauty UK Circulation Vs Price Chart Low Price High Price Low Circulation High Circulation GLOW Contributor Contributor Contributor Executive Editor Staff Writer Freelance Expert Design Publisher Manufacturer Distribution Retailer Retailer Retailer Newsagents Supermarkets Department Stores Revenue and Consumer Feedback Production of Publication Registering Brand Name Legislation "GLOW BEAUTY MAG LTD"
= £15 Ensures financial strategies support broad aims of business enjoy
shopping Identified in market

Appeals to

Quality Print =

Operates in and quality

Minimum overheads provides better cash flow

Invest in specialist magazine GLOW Start up Loan Unpaid Internships Fact Checker The Copyright, Designs & Patents Act 1988 Advertising Law Governed by Advertising Standards Authority Copyright Law Circulation Sales Advertising Revenue Subscriptions GLOW Beauty UK Overheads Financial Considerations Printing Costs Delivery Costs Proprietor needs 25% capital (£25000)
ART charge an arrangement fee of £750
ART charge a membership fee of £250
Fees = £1000
Cost of Loan £76,000
ART charge 14% above the interest base rate of 0.5% To pay back over 5 years
Pay £1845 a month x 60 months = £110,700 total to payback Alternative Lender Asking Loan = £100,000 Need to present a 12 month Cash Flow Forecast gap aging demographic emotional bond cheap location Cost Efficient Survey Questionnaire -
50 affluent women
shopping in Birmingham

Consumer Observation

Phone Conversation - ART Finance Manager Andy King

Phone Conversation - Quotemeprint.com

Phone Conversation - Helen Issacs, Co MAG

FLUX Magazine Event, Manchester - "How to set up a magazine" Advanced Style Blog

for 25,000 copies p. month Paper Weighting = 387g approx
per copy £645 £7740 for 25,000 copies p. year ATKearney Inc Marketing and Communications (2010) What do MatureConsumer’s Want? PDF. [report] Chicago, Illinois: p.1-16. Consterdine.com (2012) Reader’s Relationships with Magazines. [online]Available at: ttp://www.consterdine.com/articlefiles/42/HMAW5.pdf Co Mag - http://www.comag.co.uk/ Quotemeprint - http://www.quotemeprint.com/newspapers/online_quote Keynote 'Men and Women's Buying Habits 2012 Report PDF Co-Work Borough - http://co-work.co/borough/ Smarta - http://www.smarta.com/ Key Note Publishing (2011) Lifestyle Magazines PDF. [report] Key Note, p.1-110. Wholesaler Wholesaler Wholesaler Consumer Companies House - http://www.companieshouse.gov.uk/
https://ewf.companieshouse.gov.uk//runpage?page=welcome GLOW Beauty UK Financial Considerations Overheads £726,205 Approximate Total Overheads Per Year Per Month £60,518 Cover Price Sales split up:
Retailer 25% Wholesaler 15% Distributor 10%
Publisher (GLOW Beauty UK) 50%
Monthly Income = 50% of £3.45 x 25,000 = £43,125
Yearly Income = £517,500 Outgoings/Expenditures Business Revenue Advertiser Interest Advertising Revenue: £1.8 million
Circulation & Subscription Sales: £517,500 Shared Office Space: £82,080
Staff Wages: £350,000-£400,000
Printing Costs: £256,140
Delivery Costs: £7740
Launch/Promotion: £30,000
PO Box Address: £230
Registered Name: £15 Total = £776,205 Total = £2,317,500 Total Profit = £1,541,295 Minus Equals
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