(d) Strategies for Achieving Proposed Listenership and Revenue Targets
This section should set out the sales and marketing-related strategies of the station, e.g. channels of distribution, sales methods and representation, proposed rates, discount and credit terms, promotion and marketing of the station.
Jazz FM will concentrate on two distinct audiences, the listeners, and the advertisers. These two groups very often demand separate strategies and communication messages, which are not necessarily interlinked. All communication messages will be carefully researched and designed to service their specific requirements.
Jazz FM will have a discernable advantage over other radio stations broadcasting in Dublin in its ability to be cool, sophisticated and contemporary. This will be provided by the broad yet sophisticated playlist of Jazz FM featuring not only the latest recordings but also tracks from artists from former years whose recordings are now selling in impressive quantities to a younger generation Tony Bennett, Ella Fitzgerald, Frank Sinatra and Billie Holliday.
As such Jazz FM will become a statement of good taste about which people are proud to boast rather than the other extreme whereby people of a certain achievement would actively deny listening to many other radio stations. This is an equity that when handled correctly can be nurtured to the commercial benefit of the station
Our communication objectives are
In structuring the communications strategy of the Jazz FM, we will project forward to a time in the future when our ideal and successful persona and brand identity for Jazz FM will be in place. In that way the required steps towards that achievement will be easier to identify and be financially more economic to facilitate.
However we say it, Jazz FM is likely to occupy the quality high ground with real and tangible brand equity following. Therefore all content and placement of communication messages will be borne out of this ambition.
Our first priority will be to establish the title of Jazz FM in the everyday vocabulary of our primary target audience. Within this, we will begin to establish focused quality awareness and not just widespread awareness for the sake of it. Fundamentally, the name and the frequency are the message lynchpins upon which everything else will depend.
We propose using the campaign theme/strapline of Jazz FM - one sound, many styles'. We believe that this confirms to listeners the inexaustive range of jazz related music on offer on Jazz FM and fully reflects the highly subjective nature of the music, where each listener will have his/her own interpretation of what jazz is.
Another reflection of the broad nature of improvised jazz music will be portrayed in our station symbol, the chameleon. This attractive symbol is widely used by Jazz FM stations worldwide and is another indication of what jazz means to the market - one sound, many styles, with an ability to reflect the ever changing tastes and trends in the music. The chameleon will become a familiar symbol in all our advertising and publicity.
As proven by others, the establishment of a new radio station in the Dublin market is a long-term undertaking. Therefore, our communications requirements will follow a long-term strategy so that financial resources are prudently managed and not wasted in the initial launch phases where strong advertising and public relations activities must be aggressively and constantly in play.
Media choices must be placed in qualitative and long-term contexts. Initially, a broader canvas can be utilised but the quality backdrop must be assured.
We propose launching the station with a heavyweight campaign on 4 sheet and 16 sheet posters and Superlites and will extend this via the use of Adboxes, DART cards and posters in major record stores such as Tower Records and HMV.
Press and special interest magazines will also feature heavily on the schedule especially The Irish Times, Irish Independent, selected tabloids, Hot Press, D'Side, Event Guide and Dublin student publications.
Strategic use of Bus sides will also be considered. Using outdoor media will bring Jazz FM onto the streets, and is ideal for name frequency analysis.
In using Press, we will place smaller but creative messages around the TV and Radio pages so as to place Jazz FM in the most appropriate environment and, over the long term, assume “ownership” of this environment.
Our messages will be versatile, economic to produce, and concentrate on the many product benefits once initial awareness levels are secured. Crucially, every message from Jazz FM will be refreshing to receive by creative use of colour and our intention to stand out from other stations operating in this franchise area. The use of our symbol, the chameleon, will be a constant feature.
Jazz FM will be active in our sponsorship of concerts, both those of internationally renounced artists, but also those new artists and of Irish performers. In this way, the station can be seen to be the primary motivation factor in bringing respected artists to Dublin and of nurturing home grown talent. The opportunities here should not be minimised but realistically appreciated for the brand equity they are capable of bringing.
Jazz FM will pay constant attention to this area by way of car stickers, window stickers, in-club positioning, in-hotel positioning and so on. It is an integral part of having Jazz FM “on the streets” and consequently in the everyday lives of Dubliners.
ADVERTISING SALES AND REPRESENTATION
Jazz FM's Sales Division will be divided into two areas. Direct sales will be managed by Mr Gerry Davey of Noted Marketing, a leading Dublin media sales agency. Agency sales will be contracted to an external agency which has strong links with major media buying houses, advertising agencies and client companies. Jazz FM's revenue and budget forecasts are based on advertising agency revenue representing 60% of the overall revenue and direct sales accounting for the remaining 40%.
SALES AIDS
We will provide our advertising sales agencies with a full repertoire of professional sales material including Powerpoint presentation formats, rate cards, research profiles and information from the latest JNLR's. Where necessary, we will provide a radio commercial concept and scripting service for clients.
PUBLIC RELATIONS
Jazz FM's public relation consultants will be constantly working for the station, creating and imposing the most commercially beneficial images for the station in the minds of all appropriate influencers and listeners. We are aware that the results of PR campaigns are best viewed over a 3 - 5 year term, but we intend launching the station with a three-pronged, heavyweight informational campaign aimed at:
a)
potential advertisers and agencies
b) media at large,
but especially the music and marketing press
c)
potential listeners
Addenda
1
Potential Audience
|
Demographics X Socio-Economics
|
|
Young |
Addenda 4
Advertising Expenditure: Radio 1
Addenda 5
Advertising Expenditure: Radio 2
 |
SECTION 7
FINANCIAL AND BUSINESS PLAN
(a) Overall Financial Strategy
This section should provide a considered and logical framework in which the company's business strategy is planned and pursued over a three- to five-year period. It should also serve as a benchmark against which the financial performance of the service can be measured at a later date.
OVERALL
STRATEGY
The underlying
assumptions on which the projections are based are contained in this section
after the summaries.
PRICING
STRATEGY
Jazz FM commissioned detailed research into the market place. This indicates
that while the current licence holders have a strong market position there is
room for niche stations, especially those targeting the ABC1 population. Having
spoken to advertising agencies and client companies, there seems to be an enthusiasm
to utilise a station such as Jazz FM for advertising. Given that Jazz FM will sub-contract it's sales, it is felt that 60% of the revenue will
come from agency sales and 40% from direct sales.
VARIABLE
COSTS
All variable
costs have been calculated in accordance with rules set out by the relevant
authorities. The marketing figure for the first year assumes an extra premium
for the launch of the station.
FIXED
COSTS
Salary costs
are based on employing a full-time staff of 10. A further 13 people will be
involved in presenting programmes, some of those will be part-time contract
employees while others will be volunteers. As previously stated the financial
management and the sales operations will be contracted out to third party organisations
with a view to keeping our salary figure at a realistic level.
PRELIMINARY
COSTS
The company
intends to launch its service in November 2001 based on the licence being awarded
in or before April 2001. It will incur outgoings of £594,464.00 in the period
between the award of the licence and the commencement of broadcasting. The
reasons for the large initial funding requirement is to match the long term
funding with suitable forms of finance, such as asset leasing to cover the up-front
capital costs of the studios and transmission equipment.
While Jazz FM are confident that all the aims of these projections will be met, our existing investors have indicated a commitment to providing further financial resources if necessary.
Due to the long term nature of this investment, detailed projected income and expenditure accounts as well as projected balance sheets are illustrated over a five year period as seen on the following pages.