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Prepared: August 28, 2006
EXPRESS: Marketing Plan

I. BIG IDEA: EXPRESS is the latest, most informative & most sought after FREELY Circulated Tabloid to
hit People in Transit. It empowers Advertisers Brands market their products and services to an ASSURED and
sought after 18-35 broad C target market.

II. The Challenge

   •   Goal: P50M Gross Annual Ad revenue per Year target
           o P4,166,666 gross advertising monthly target
           o P208,333 gross ad sales/day target
                   Roughly 50% of Inquirer Libre 2005 ad revenue of P99.7M -Based on Nielsen – rate
                      card basis
                          • 2004 Jan-Dec- Income P83.4M on rate card
                          • 2005 Jan-Dec- Income P99.7M on rate card
                          • 2006 Jan-Aug 22- Income P58.9M on rate card
                                                      • To get net figures, further remove 30% from rates
   •   Sales Figures:
           o Gross Profit of P10,400,000 (at projected P50M target, even spread of 12 months)
           o P39.6M Breakeven Point (P3.3M breakeven/month, P165,000/day)
                   Based on CEC projections- Monthly out
                          • Production- P2M
                          • Three (3) staff- P100,000
                          • Sales Commissions- at 10%- P500,000
                          • Distribution- 80,000
   •   Strategic Goals:
           o To Be the Paper of Choice By the MRT/LRT Riding Public
                   Must be Relevant, Trendsetting & Maverick
                   Provides Daily Promo Coupons
           o To Be the Preferred Advertising venue by the advertising players
                   Awareness Campaign- 1st 3 months
                          • Tie Up Content with Winning Media Brands
                                 o GMA 7? QTV? Jack TV? ETC? Cinemas? 89.9TM?, Jam 88.3?, 101.1
                                   Yes FM
                          • Agency/Client Presentations
                   Reader Feedback Surveys- Strictly monitor right after launch

III. Situation Analysis

Company Analysis: Express & KPC
  • Goals: In Need of new source of revenue to arrest losses in current MST operation
  • Focus: Make Express breakthrough product of KPC
  • Opportunity: Create synergy with existing Manila Standard Today paper.
  • Culture: Traditional
  • Strengths:

                                                                                                        1
o Connections/Ties with MRT/LRT Head of Operations
          o Existing Printing Facilities
          o Existing News Editorial Writers/Content
          o Principal with Big Warchest
   •   Weaknessess:
          o Content Management
          o Dilapidated Printing facilities
          o Principal stringent with investing further based on past experiences.
   •   Market Share: MST at 1% market share in terms of Ad revenue, 0.5% in circulation (as per AC
       Nielsen 2005 data, MST at P47M vs.P7.7B tot print ad rev)

Customer Analysis

   •   Number: Total 22.9M monthly riders (763,000 daily riders)
          o MRT- 10.7M monthly (source: www.dotcmrt3.gov.ph)
          o LRT 1- 8.7M monthly (souce: www.lrta.gov.ph)
          o LRT 1- 3.5M monthly (souce: www.lrta.gov.ph)
          o
   •   Type: Students & Urban Professionals aged 16-40 Male Female
          Note: More advertisers target Women
          Justification: as per Nielsen, 8 out of 10 top magazines ad revenue target female market
   •   Value Drivers: Jobs, Shopping, Gimmick, Entertainment, Showbiz Gossip, Fashion Trends, Music,
       Cellphones/Gadgets, Food, Sports
   •   Decision Process: Quick, Easy to shift, experimental and experiential, fickle
   •   Concentration of customer base for particular products
          o Personal Hygiene, Groceries (Food/Beverage), Telco, Cellphones/Gadgets, Alchoholic
              Beverages and Cigarettes, Fashion, Pharma, etc.

Competitor Analysis
INQUIRER LIBRE
   • Market Position: No. 1
         o 95% in terms of Ad revenue- P99.7M vs P3M of Pasayo
   • Strengths:
         o FIRST-established brand
         o Anchored on strong brand- Inquirer
         o Strong brand name- LIBRE
         o Wide advertising acceptance
         o Horoscope- Against tradition, it’s funny, appeals to MRT audience
   • Weaknesses
         o Distribution & Availability
         o Terms of deployment (First come first serve)
   • Market Shares (in terms of Ad Revenue)
         o Inquirer Libre- 95%
         o Pasayo- 5%
         o Star Blitz- 0%


                                                                                                       2
o Transit 0%

Note: Inquirer Libre is sold on its own, ‘Not’ as a combo package with Inquirer. The combo package
exclusive to Hip/Inq Magazines (Swing, MPH, Gaming Monthly, Burn)


         In Summary

         1. Ad Revenue (based on AC Nielsen Jan-Aug 22-06 data)
         MRT Pub        Ad revenue
         inq libre         58,920    95.2%
         pasayo
          peoples plus      1,532     2.5%
             news plus      1,439     2.3%
                TOTAL      61,891
         others not available

         2. Inquirer Libre Advertising Rates
         Col/Cm               231
         Col Surch      + 80%
         Pos. Surch     + 15-30%



         In Detail
                                                                      Front
                                                            Back Pos. Pos.
                        Specs       B/W          Full Color Surcharge Surcharge
         Full Page      7x30           48,510      87,318    100,416    113,513
         3/4 Page       7x23           37,191      66,943     76,984     87,026
         Half Page      7x15           24,225      43,659     50,208     56,757
         1/4 Page                      12,127      21,829     25,103     28,378

         Special Execution Rates

         FALSE COVER- Your Brand is the Front Page New s

         PACKAGE 1
         Front False Cover (Full-Color),
         Full Page Ad (Full-Color, Inside or Back)
         Inside Front Cover (Black & White)*
         Php 174,636.00
         Value:          249,341
         Savings          74,705           30%

         PACKAGE 2
         False Cover Full Spread (Full-Color),
         Inside Front Cover (Black & White)*
         Php 183,000.00
         Value           262,439
         Savings          79,439         30%



         PACKAGE 3
         Front False Cover (Full-Color)
         Php 113,513.40
         Value            113513
         Savings                 0


Collaborators



                                                                                                     3
•   Subsidaries, joint ventures and distributors
          o MRT benefit/ Revenue (distributor)
          o Tie Ups with companies to provide discounts (content joint venture)
          o Tie Ups with Media brands to guarantee tri-media promotions (content joint venture)
          o Opportunity to freely circulate in other areas (e.g. Malls, Paking Areas, Bus Stations, Supper
              Ferry)-will increase expenses but will strengthen reason for advertisers to come in.

Climate

Macro-environmental PEST analysis

   •   Political and legal environment
           o Right Connections Give KPC an advantage
           o Better Deals, Better Merchandising Opportunities
   •   Economic environment
           o It’s Free, How to win advertisers is the economic challenge
   •   Social and Cultural Env
           o Gives riding public an additional choice in free information & entertainment
   •   Technological Env
           o Precise Target Hits (by concentrating in MRT/LRT lines) & advancement from current
               publication business module (Purely ad revenue based income)

SWOT Analysis
Strengths                                  Weak ness
> Connections with Venue of Circ           > Content Management
> Existing Content & Printing Facilities   > Dilapidated Printing Facilities
> Principal with big financial warchest    > Principal wait & see/ support issues
Opportunities                              Threats
> Steal 50% Ad Revenue share ist year      > Strong No. 1 Position of Inq Libre
> Synnergy with MST Publication            > Entrants of new players
> Tie Ups with media to ensure coverage    > advertisers/Client Acceptance


IV. Market Segmentation

   •   Description: Two Markets: ADVERTISER & READER
   •   Percent of Sales: 50% Target revenue of Inquirer- P50M vs. P100M of Inq Libre (Advertiser)
   •   What they Want: Meaningful/Abruptive/Relevant Content/ Visible/ Better Ad Rates, Packaging &
       Bonuses (Advertiser) **note-most media buyers and junior marketing managers take MRT/LRT to
       work.
   •   How they use product: Marketing Tool/Media Venue (Advertiser) Get News, Information &
       Entertainment (Reader)
   •   Support requirements: Must be interesting, sought after, talked about for advertisers to take a second
       look at. Must have content which Inquirer Libre does not support.
   •   How to reach them: Tri Media Visibility, Agency Client Presentations (Advertiser) Better positioning
       in MRT malls than Inq Libre (Reader)
   •   Price sensitivity: In terms of advertisement, better value for advertisers than Inquirer Libre despite
       same circulation. (Advertiser)

                                                                                                                4
V. Alternative Marketing Strategies

   •   Position Express as the Free Daily Jobs/Career Paper circulated in MRT, with Media Guide Inside
   •   Position Express as the Free Daily Gadgets Paper circulated in MRT, with Media Guide Inside
   •   Position Express as the Free Daily Urban Life Paper Circulated Paper., with Interactive Component.
   •   Position Express as the Free Daily Humor Publication circulated in MRT, with Media Guide inside.
   •   Position Express as the Great Mall Finds Paper, What to do once disembarking MRT.

Diverge Sections, Niche within MRT Station an opportunity.
Copy successful publications formats and adapt own style.

VI. Selected Marketing Strategy

Position ‘Express’ as a Freely Circulated Paper exclusively within MRT/LRT anchored on the content of
current broadsheet Manila Standard Today. It strength lies in its various promo coupon content and TV &
Entertainment guides inside. Our transit market will be a good selling proposition to various advertising
players.

PRODUCT (C/O JAR)

The product decisions should consider the products advantages and how they will they be leveraged. Product
decisions should include

   •   BRAND NAME
   •   POSITION
   •   SELLING POINT (to advertiser and reader in terms of content)
   •   MOCK UP (visual appeal)

PRICE- Advertising Rates

   Strategy: Make Rate Card same as Inquirer Libre, but have EXPRESS/ MST Combo Packages
             Lowest Cost/Col Cm threshold at P150
             In case of no advertising support, prepare to give rates as low as P50 per col/cm.




                                                                                                             5
EXPRESS Proposed Advertisers Rates

Col/Cm              231                     Same as Libre
Col Surch     + 80%
Pos. Surch    + 15-30%


Cost At P231 Rate Card
                                                                 Front
                                                       Back Pos. Pos.
              Specs       B/W               Full Color Surcharge Surcharge
Full Page     7x30               48,510       87,318     100,416   113,513
3/4 Page      7x23               37,191       66,943      76,984    87,026
Half Page     7x15               24,255       43,659      50,208    56,757
1/4 Page      3.5 x 15           12,128       21,829      25,103    28,378

We Go as Low as P150 col/cm for extra discriminating and eccentric clients
35% off Rate Card
Cost At P150 col/cm
                                                                 Front
                                                       Back Pos. Pos.
              Specs       B/W               Full Color Surcharge Surcharge
Full Page     7x30               31,500       56,700      65,205    73,710
3/4 Page      7x23               24,150       66,943      76,984    87,026
Half Page     7x15               15,750       43,659      50,208    56,757
1/4 Page      3.5 x 15            7,875       21,829      25,103    28,378

X-Deals/Barter 100% rate card

Long Term Packaqes= Availment of Combo

Package A: P500,000 ads in Express entitles you to Four Free Ear Ads (2x5)
or Two (2) Press Releases in MST
Breakdown Sample
    500,000 Express                  Value     Paying
                     6 Full Page Ads   500,000 yes
             MST
                      4 Ear Ads          8,360 free
             OR
                      2 Press Releases         free


Package B: P500,000 ads in MST entitles you to        Free Ear Ads in Express
Breakdown Sample
    500,000 MST                     Value             Paying
                    3 FPFC Ads        500,000         yes
            Express
                     4 Ear Ads          8,360         free

              Plus free 4 releases in MST

Package C- FALSE COVER, Pattern out with Inquirer Libre

PACKAGE 1
Front False Cover (Full-Color),
Full Page Ad (Full-Color, Inside or Back)
Inside Front Cover (Black & White)*
Php 174,636.00
Value:          223,146
Savings          48,510              22%

PACKAGE 3
Front False Cover Only (Full-Color)
Php 113,513.40
Value            113513
Savings                0




                                                                                6
DISTRIBUTION (Place)

   Select stations with high traffic, relevant purchase points
       • MRT Edsa North Edsa, Cubao, Ortigas, Makati Stations
       • LRT 1: Edsa, Monumento
       • MRT 2: Cubao, Katipunan

   Instead of FREE in the morning Inquirer Libre strategy in location, paying customers from 10am-4pm get
   copies of Express, OR Strictly deploy 8AM, time when office workers (think advertisers, marketing
   professionals take MRT/LRT) still free but managed circulation. Big concern of advertisers.

   PROMOTION

           •       MEDIA TIE UPS TO GAIN PUBLICITY (TV, RC, MAGAZINES)
           •       Lots of Posters, Streamers within MRT
                      o Theres more reason to ride the MRT- Express
           •       House Ads Within Manila Standard Today Paper & Website

                   •   Devote standard 1.5 pages to media partners (worth approximately P150k to P200k daily in media
                       barter deals/ roughly P2M a month)

   Express needs to be more pro-active in promotions to create atmosphere of being bigger and better or strong
   alternative to Inquirer Libre

   VII. Expenditures VS. Revenue Projections
Expenditure Summary 2007                                         Jan       Feb           Mar              Apr          May           Jun                Jul          Aug           Sep           Oct           Nov                Dec
                    Cost (000')         What
1. Production

                                        paper, prod, salaries,
50,000 copies daily,           36300 commissions, etc.                       3,300          3,300         3,300        3,300             3,300          3,300            3,300         3,300         3,300         3,300           3,300
                                                                       in line with repairs of printing


2. Promotions
                                        MST (print & web) + TV partner + RC Partner + Magazine Partner + Posters/Streamers in MRT/LRT
                                                                     Barter Airtime/Space within Express & Manila Standard Today
                                  45    TV material                          45
                                  25    Radio material                       25
                                   0    mags (c/o Byron)                      0
                                 500    Posters                             500                                                  500

3. Client Agency Presentations
                                 150 Tokens/Dine Out                             50            10               10           10             10                10            10            10            10            10                10

TOTAL Investment             37,020



Sales Projection 2007                 Dec             Jan              Feb            Mar           Apr              May           Jun            Jul              Aug           Sep           Oct           Nov            Dec
Optimistic Projection
Pre-Sell start Nov 2006 REV (000')
                                38500                                         1500           2000           3000           4000           4000           4000             4000          4000          4000          4000            4000
No. of FPFC Ads Monthly (used P63k, at P150 cost/colcm)                         24             32             48             63             63             63               63            63            63            63              63
No of FPFC Ads Daily/ 20 days                                                  1.2            1.6            2.4            3.2            3.2            3.2              3.2           3.2           3.2           3.2             3.2
*Media Ex-Deals not included in sales
P0.9M Profit                                            980                (2,420)        (1,310)          (310)           690            690             190             690           690           690           690             690

Realistic Projection
Pre-Sell start Nov 2006  REV (000')
                                31500                                         1000           1500           2000           3000           3000           3500             4000          4000          3500          3000            3000
No. of FPFC Ads Monthly                                                         16             24             32             48             48             56               63            63            56            48              48
No of FPFC Ads Daily/ 20 days                                                  0.8            1.2            1.6            2.4            2.4            2.8              3.2           3.2           2.8           2.4             2.4
*Media Ex-Deals not included in sales
P6.02M LOSS                                          (6,020)               (2,920)        (1,810)         (1,310)          (310)          (310)          (310)            690           690           190           (310)           (310)




                                                                                                                                                                                                                                             7
VIII. Conclusion

In Principle, The Express effort is a winner from all angles. The greatest challenge though is since Advertising
will be the only source of revenue from this effort, the strategy and content must be in line with what clients
& advertisers expect. Aside from this, we have to contend with the fact that there already exists a strong brand
which has been successfully operating for three years. ( If you were to buy Bottled Green Iced Tea, which will
you choose C2of URC or One of Zesto?) Our content must truly be groundbreaking to be talked about by the
transit market (15-40 Broad C Male/Female) which will translate to winning advertisers share of monies. The
trick in succeeding to position Express as the Free tabloid with Substance and relevance, not just another 12
page freely circulated tabloid to hit the MRT/LRT.

Marketing will play a vital role in Express success since it will do all tie ups to ensure ‘Express’ is properly
promoted on select TV and Radio stations. Media Presence will give Express a slight advantage over Libre.
(Ma Mon Luk and Tankationg (Jollibee) used to be very good friends. Tankationg invested a lot in
advertising while Ma Mon Luk maintained his day top day operations, scoffed at advertising and its’ great
products which sell, not expensive advertising. After 20 years, the disparity is clearly evident that advertising
has been a big catalyst in Jollibee’s success. )

With the given projected operating expense of P3.3 million a month by Finance, Marketing has set Ad Sales
Targets P4 million a month, roughly half of Inquirer Libre’s P8M monthly ad revenue.

An optimistic projection shows that if all variables go according to plan, KPC stands to earn an additional
P900,000 a year.

Another projection shows that with our present handicap and combined with other intangibles (aptitude of
sales teams and existing support staff), KPC might stand to loose more or less P6M annually.

Bottomline, Inquirer Libre has shown that being a freely circulated paper can earn around P100M a year and
all things considered, a very good indication that Express as a business venture will succeed.


----------------------------------------------------------------------------------------------------------------------------------
Additional Info: Revenue of Advertisers per listed publication titles
Source: Nielsen Ad Quest:
Note: 2006 Jan-Aug 22 data only
        Report Heading 2
                                                                                 Jan-Aug 22,
        Currency             P000's                                              2006
                                                                                               Share
                                                                                               06
                               Grand       Y2003        Y2004        Y2005        Y2006 *
 ran                           Total       Total        Total        Total         Total
 k
        PHIL. DAILY
 1      INQUIRER              9,370,230   2,399,800    2,711,405    2,701,203    1,557,822     33%
 2      PHILIPPINE STAR       8,104,662   2,005,075    2,320,443    2,385,627    1,393,517     30%
 3      MANILA BULLETIN       4,791,773   1,210,864    1,355,430    1,378,850      846,630     18%
 4      BUSINESS WORLD         694,975     133,353      189,823      228,454       143,345     3%
        PEOPLE'S
 5      JOURNAL                580,030     154,277      179,415      161,282        85,056     2%
 6      SUNSTAR CEBU            67,476             0            0            0      67,476     1%
 7      INQUIRER LIBRE         242,088             0     83,422       99,745        58,920     1%
        PILIPINO STAR
 8      NGAYON                 181,756             0     53,352       71,040        57,363     1%


                                                                                                                                     8
9      ABANTE              210,846           0      74,931      83,300      52,615    1%
       WALL ST.
10     JOURNAL ASIA       3,036,562   1,078,469   1,042,036    866,492      49,565    1%
11     MINDANAO TIMES       48,386           0           0           0      48,386    1%
       PEOPLE'S
12     JOURNAL T.          319,567      93,437     106,193      76,375      43,562    1%
       THE MINDANAO
13     DAILY MIRROR         41,615           0           0           0      41,615    1%
14     THE FREEMAN         143,470      31,958      32,072      46,984      32,456    1%
       MANILA
15     STANDARD TODAY       78,170           0           0      47,846      30,323    1%
       COMPUTERWORLD
16     PHIL.               268,546      89,560      84,118      67,291      27,578    1%
17     MANILA TIMES        209,862      70,635      60,360      51,654      27,212    1%
18     CEBU DAILY NEWS      25,785           0           0           0      25,785    1%
19     BULGAR               79,764           0      26,566      31,858      21,340    0%
20     MALAYA              114,046      34,414      33,033      28,337      18,262    0%
21     SUNSTAR DAVAO        14,842           0           0           0      14,842    0%
22     ABANTE TONITE        58,857           0      24,965      20,217      13,675    0%
23     TEMPO                36,173           0      10,944      13,133      12,095    0%
       SUNDAY INQUIRER
24     NEWSPAPER            93,109      33,211      29,139      24,332       6,427    0%
25     BALITA               13,093       2,359       1,847       3,232       5,656    0%
       PASA'YO
26     NEWSPLUS              1,532           0           0           0       1,532    0%
       PASA'YO
27     PEOPLEPLUS            1,439           0           0           0       1,439    0%
28     FUN PAGE              8,518       2,587       2,653       2,647         631    0%
       CHINESE COMM'L.
29     NEWS                 53,732      13,072      20,519      20,141           0    0%
30     DAILY SUN               176           0         176           0           0    0%
31     KABAYAN              17,548       8,741       6,472       2,335           0    0%
       MANILA BULLETIN
32     SPECIAL ISSUE         1,113       1,113           0           0           0    0%
       MANILA
33     STANDARD            109,745      55,907      46,641       7,197           0    0%
       METRO
34     COMPUTER TIMES        9,993       9,551         442           0           0    0%
35     SINO-FIL DAILY       86,558      25,946      30,050      30,562           0    0%
       THE JUNIOR
36     INQUIRER SPECIAL      5,437       2,306       2,634         498           0    0%
37     TODAY               111,407      53,171      51,209       7,027           0    0%
       UNITED DAILY
38     NEWS                 85,465      28,582      27,347      29,536           0    0%
39     WORLD NEWS           229,508     79,619      86,356      63,533           0    0%
                          29,547,85
       Grand Total                5   7,618,007   8,693,995   8,550,727   4,685,127




Note: to date, Nielsen does not tabulate Business Mirror ad revenue




                                                                                           9

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Freely Circulated Newspaper Marketing Plan + Case Study

  • 1. Prepared: August 28, 2006 EXPRESS: Marketing Plan I. BIG IDEA: EXPRESS is the latest, most informative & most sought after FREELY Circulated Tabloid to hit People in Transit. It empowers Advertisers Brands market their products and services to an ASSURED and sought after 18-35 broad C target market. II. The Challenge • Goal: P50M Gross Annual Ad revenue per Year target o P4,166,666 gross advertising monthly target o P208,333 gross ad sales/day target  Roughly 50% of Inquirer Libre 2005 ad revenue of P99.7M -Based on Nielsen – rate card basis • 2004 Jan-Dec- Income P83.4M on rate card • 2005 Jan-Dec- Income P99.7M on rate card • 2006 Jan-Aug 22- Income P58.9M on rate card • To get net figures, further remove 30% from rates • Sales Figures: o Gross Profit of P10,400,000 (at projected P50M target, even spread of 12 months) o P39.6M Breakeven Point (P3.3M breakeven/month, P165,000/day)  Based on CEC projections- Monthly out • Production- P2M • Three (3) staff- P100,000 • Sales Commissions- at 10%- P500,000 • Distribution- 80,000 • Strategic Goals: o To Be the Paper of Choice By the MRT/LRT Riding Public  Must be Relevant, Trendsetting & Maverick  Provides Daily Promo Coupons o To Be the Preferred Advertising venue by the advertising players  Awareness Campaign- 1st 3 months • Tie Up Content with Winning Media Brands o GMA 7? QTV? Jack TV? ETC? Cinemas? 89.9TM?, Jam 88.3?, 101.1 Yes FM • Agency/Client Presentations  Reader Feedback Surveys- Strictly monitor right after launch III. Situation Analysis Company Analysis: Express & KPC • Goals: In Need of new source of revenue to arrest losses in current MST operation • Focus: Make Express breakthrough product of KPC • Opportunity: Create synergy with existing Manila Standard Today paper. • Culture: Traditional • Strengths: 1
  • 2. o Connections/Ties with MRT/LRT Head of Operations o Existing Printing Facilities o Existing News Editorial Writers/Content o Principal with Big Warchest • Weaknessess: o Content Management o Dilapidated Printing facilities o Principal stringent with investing further based on past experiences. • Market Share: MST at 1% market share in terms of Ad revenue, 0.5% in circulation (as per AC Nielsen 2005 data, MST at P47M vs.P7.7B tot print ad rev) Customer Analysis • Number: Total 22.9M monthly riders (763,000 daily riders) o MRT- 10.7M monthly (source: www.dotcmrt3.gov.ph) o LRT 1- 8.7M monthly (souce: www.lrta.gov.ph) o LRT 1- 3.5M monthly (souce: www.lrta.gov.ph) o • Type: Students & Urban Professionals aged 16-40 Male Female Note: More advertisers target Women Justification: as per Nielsen, 8 out of 10 top magazines ad revenue target female market • Value Drivers: Jobs, Shopping, Gimmick, Entertainment, Showbiz Gossip, Fashion Trends, Music, Cellphones/Gadgets, Food, Sports • Decision Process: Quick, Easy to shift, experimental and experiential, fickle • Concentration of customer base for particular products o Personal Hygiene, Groceries (Food/Beverage), Telco, Cellphones/Gadgets, Alchoholic Beverages and Cigarettes, Fashion, Pharma, etc. Competitor Analysis INQUIRER LIBRE • Market Position: No. 1 o 95% in terms of Ad revenue- P99.7M vs P3M of Pasayo • Strengths: o FIRST-established brand o Anchored on strong brand- Inquirer o Strong brand name- LIBRE o Wide advertising acceptance o Horoscope- Against tradition, it’s funny, appeals to MRT audience • Weaknesses o Distribution & Availability o Terms of deployment (First come first serve) • Market Shares (in terms of Ad Revenue) o Inquirer Libre- 95% o Pasayo- 5% o Star Blitz- 0% 2
  • 3. o Transit 0% Note: Inquirer Libre is sold on its own, ‘Not’ as a combo package with Inquirer. The combo package exclusive to Hip/Inq Magazines (Swing, MPH, Gaming Monthly, Burn) In Summary 1. Ad Revenue (based on AC Nielsen Jan-Aug 22-06 data) MRT Pub Ad revenue inq libre 58,920 95.2% pasayo peoples plus 1,532 2.5% news plus 1,439 2.3% TOTAL 61,891 others not available 2. Inquirer Libre Advertising Rates Col/Cm 231 Col Surch + 80% Pos. Surch + 15-30% In Detail Front Back Pos. Pos. Specs B/W Full Color Surcharge Surcharge Full Page 7x30 48,510 87,318 100,416 113,513 3/4 Page 7x23 37,191 66,943 76,984 87,026 Half Page 7x15 24,225 43,659 50,208 56,757 1/4 Page 12,127 21,829 25,103 28,378 Special Execution Rates FALSE COVER- Your Brand is the Front Page New s PACKAGE 1 Front False Cover (Full-Color), Full Page Ad (Full-Color, Inside or Back) Inside Front Cover (Black & White)* Php 174,636.00 Value: 249,341 Savings 74,705 30% PACKAGE 2 False Cover Full Spread (Full-Color), Inside Front Cover (Black & White)* Php 183,000.00 Value 262,439 Savings 79,439 30% PACKAGE 3 Front False Cover (Full-Color) Php 113,513.40 Value 113513 Savings 0 Collaborators 3
  • 4. Subsidaries, joint ventures and distributors o MRT benefit/ Revenue (distributor) o Tie Ups with companies to provide discounts (content joint venture) o Tie Ups with Media brands to guarantee tri-media promotions (content joint venture) o Opportunity to freely circulate in other areas (e.g. Malls, Paking Areas, Bus Stations, Supper Ferry)-will increase expenses but will strengthen reason for advertisers to come in. Climate Macro-environmental PEST analysis • Political and legal environment o Right Connections Give KPC an advantage o Better Deals, Better Merchandising Opportunities • Economic environment o It’s Free, How to win advertisers is the economic challenge • Social and Cultural Env o Gives riding public an additional choice in free information & entertainment • Technological Env o Precise Target Hits (by concentrating in MRT/LRT lines) & advancement from current publication business module (Purely ad revenue based income) SWOT Analysis Strengths Weak ness > Connections with Venue of Circ > Content Management > Existing Content & Printing Facilities > Dilapidated Printing Facilities > Principal with big financial warchest > Principal wait & see/ support issues Opportunities Threats > Steal 50% Ad Revenue share ist year > Strong No. 1 Position of Inq Libre > Synnergy with MST Publication > Entrants of new players > Tie Ups with media to ensure coverage > advertisers/Client Acceptance IV. Market Segmentation • Description: Two Markets: ADVERTISER & READER • Percent of Sales: 50% Target revenue of Inquirer- P50M vs. P100M of Inq Libre (Advertiser) • What they Want: Meaningful/Abruptive/Relevant Content/ Visible/ Better Ad Rates, Packaging & Bonuses (Advertiser) **note-most media buyers and junior marketing managers take MRT/LRT to work. • How they use product: Marketing Tool/Media Venue (Advertiser) Get News, Information & Entertainment (Reader) • Support requirements: Must be interesting, sought after, talked about for advertisers to take a second look at. Must have content which Inquirer Libre does not support. • How to reach them: Tri Media Visibility, Agency Client Presentations (Advertiser) Better positioning in MRT malls than Inq Libre (Reader) • Price sensitivity: In terms of advertisement, better value for advertisers than Inquirer Libre despite same circulation. (Advertiser) 4
  • 5. V. Alternative Marketing Strategies • Position Express as the Free Daily Jobs/Career Paper circulated in MRT, with Media Guide Inside • Position Express as the Free Daily Gadgets Paper circulated in MRT, with Media Guide Inside • Position Express as the Free Daily Urban Life Paper Circulated Paper., with Interactive Component. • Position Express as the Free Daily Humor Publication circulated in MRT, with Media Guide inside. • Position Express as the Great Mall Finds Paper, What to do once disembarking MRT. Diverge Sections, Niche within MRT Station an opportunity. Copy successful publications formats and adapt own style. VI. Selected Marketing Strategy Position ‘Express’ as a Freely Circulated Paper exclusively within MRT/LRT anchored on the content of current broadsheet Manila Standard Today. It strength lies in its various promo coupon content and TV & Entertainment guides inside. Our transit market will be a good selling proposition to various advertising players. PRODUCT (C/O JAR) The product decisions should consider the products advantages and how they will they be leveraged. Product decisions should include • BRAND NAME • POSITION • SELLING POINT (to advertiser and reader in terms of content) • MOCK UP (visual appeal) PRICE- Advertising Rates Strategy: Make Rate Card same as Inquirer Libre, but have EXPRESS/ MST Combo Packages Lowest Cost/Col Cm threshold at P150 In case of no advertising support, prepare to give rates as low as P50 per col/cm. 5
  • 6. EXPRESS Proposed Advertisers Rates Col/Cm 231 Same as Libre Col Surch + 80% Pos. Surch + 15-30% Cost At P231 Rate Card Front Back Pos. Pos. Specs B/W Full Color Surcharge Surcharge Full Page 7x30 48,510 87,318 100,416 113,513 3/4 Page 7x23 37,191 66,943 76,984 87,026 Half Page 7x15 24,255 43,659 50,208 56,757 1/4 Page 3.5 x 15 12,128 21,829 25,103 28,378 We Go as Low as P150 col/cm for extra discriminating and eccentric clients 35% off Rate Card Cost At P150 col/cm Front Back Pos. Pos. Specs B/W Full Color Surcharge Surcharge Full Page 7x30 31,500 56,700 65,205 73,710 3/4 Page 7x23 24,150 66,943 76,984 87,026 Half Page 7x15 15,750 43,659 50,208 56,757 1/4 Page 3.5 x 15 7,875 21,829 25,103 28,378 X-Deals/Barter 100% rate card Long Term Packaqes= Availment of Combo Package A: P500,000 ads in Express entitles you to Four Free Ear Ads (2x5) or Two (2) Press Releases in MST Breakdown Sample 500,000 Express Value Paying 6 Full Page Ads 500,000 yes MST 4 Ear Ads 8,360 free OR 2 Press Releases free Package B: P500,000 ads in MST entitles you to Free Ear Ads in Express Breakdown Sample 500,000 MST Value Paying 3 FPFC Ads 500,000 yes Express 4 Ear Ads 8,360 free Plus free 4 releases in MST Package C- FALSE COVER, Pattern out with Inquirer Libre PACKAGE 1 Front False Cover (Full-Color), Full Page Ad (Full-Color, Inside or Back) Inside Front Cover (Black & White)* Php 174,636.00 Value: 223,146 Savings 48,510 22% PACKAGE 3 Front False Cover Only (Full-Color) Php 113,513.40 Value 113513 Savings 0 6
  • 7. DISTRIBUTION (Place) Select stations with high traffic, relevant purchase points • MRT Edsa North Edsa, Cubao, Ortigas, Makati Stations • LRT 1: Edsa, Monumento • MRT 2: Cubao, Katipunan Instead of FREE in the morning Inquirer Libre strategy in location, paying customers from 10am-4pm get copies of Express, OR Strictly deploy 8AM, time when office workers (think advertisers, marketing professionals take MRT/LRT) still free but managed circulation. Big concern of advertisers. PROMOTION • MEDIA TIE UPS TO GAIN PUBLICITY (TV, RC, MAGAZINES) • Lots of Posters, Streamers within MRT o Theres more reason to ride the MRT- Express • House Ads Within Manila Standard Today Paper & Website • Devote standard 1.5 pages to media partners (worth approximately P150k to P200k daily in media barter deals/ roughly P2M a month) Express needs to be more pro-active in promotions to create atmosphere of being bigger and better or strong alternative to Inquirer Libre VII. Expenditures VS. Revenue Projections Expenditure Summary 2007 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cost (000') What 1. Production paper, prod, salaries, 50,000 copies daily, 36300 commissions, etc. 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 in line with repairs of printing 2. Promotions MST (print & web) + TV partner + RC Partner + Magazine Partner + Posters/Streamers in MRT/LRT Barter Airtime/Space within Express & Manila Standard Today 45 TV material 45 25 Radio material 25 0 mags (c/o Byron) 0 500 Posters 500 500 3. Client Agency Presentations 150 Tokens/Dine Out 50 10 10 10 10 10 10 10 10 10 10 TOTAL Investment 37,020 Sales Projection 2007 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Optimistic Projection Pre-Sell start Nov 2006 REV (000') 38500 1500 2000 3000 4000 4000 4000 4000 4000 4000 4000 4000 No. of FPFC Ads Monthly (used P63k, at P150 cost/colcm) 24 32 48 63 63 63 63 63 63 63 63 No of FPFC Ads Daily/ 20 days 1.2 1.6 2.4 3.2 3.2 3.2 3.2 3.2 3.2 3.2 3.2 *Media Ex-Deals not included in sales P0.9M Profit 980 (2,420) (1,310) (310) 690 690 190 690 690 690 690 690 Realistic Projection Pre-Sell start Nov 2006 REV (000') 31500 1000 1500 2000 3000 3000 3500 4000 4000 3500 3000 3000 No. of FPFC Ads Monthly 16 24 32 48 48 56 63 63 56 48 48 No of FPFC Ads Daily/ 20 days 0.8 1.2 1.6 2.4 2.4 2.8 3.2 3.2 2.8 2.4 2.4 *Media Ex-Deals not included in sales P6.02M LOSS (6,020) (2,920) (1,810) (1,310) (310) (310) (310) 690 690 190 (310) (310) 7
  • 8. VIII. Conclusion In Principle, The Express effort is a winner from all angles. The greatest challenge though is since Advertising will be the only source of revenue from this effort, the strategy and content must be in line with what clients & advertisers expect. Aside from this, we have to contend with the fact that there already exists a strong brand which has been successfully operating for three years. ( If you were to buy Bottled Green Iced Tea, which will you choose C2of URC or One of Zesto?) Our content must truly be groundbreaking to be talked about by the transit market (15-40 Broad C Male/Female) which will translate to winning advertisers share of monies. The trick in succeeding to position Express as the Free tabloid with Substance and relevance, not just another 12 page freely circulated tabloid to hit the MRT/LRT. Marketing will play a vital role in Express success since it will do all tie ups to ensure ‘Express’ is properly promoted on select TV and Radio stations. Media Presence will give Express a slight advantage over Libre. (Ma Mon Luk and Tankationg (Jollibee) used to be very good friends. Tankationg invested a lot in advertising while Ma Mon Luk maintained his day top day operations, scoffed at advertising and its’ great products which sell, not expensive advertising. After 20 years, the disparity is clearly evident that advertising has been a big catalyst in Jollibee’s success. ) With the given projected operating expense of P3.3 million a month by Finance, Marketing has set Ad Sales Targets P4 million a month, roughly half of Inquirer Libre’s P8M monthly ad revenue. An optimistic projection shows that if all variables go according to plan, KPC stands to earn an additional P900,000 a year. Another projection shows that with our present handicap and combined with other intangibles (aptitude of sales teams and existing support staff), KPC might stand to loose more or less P6M annually. Bottomline, Inquirer Libre has shown that being a freely circulated paper can earn around P100M a year and all things considered, a very good indication that Express as a business venture will succeed. ---------------------------------------------------------------------------------------------------------------------------------- Additional Info: Revenue of Advertisers per listed publication titles Source: Nielsen Ad Quest: Note: 2006 Jan-Aug 22 data only Report Heading 2 Jan-Aug 22, Currency P000's 2006 Share 06 Grand Y2003 Y2004 Y2005 Y2006 * ran Total Total Total Total Total k PHIL. DAILY 1 INQUIRER 9,370,230 2,399,800 2,711,405 2,701,203 1,557,822 33% 2 PHILIPPINE STAR 8,104,662 2,005,075 2,320,443 2,385,627 1,393,517 30% 3 MANILA BULLETIN 4,791,773 1,210,864 1,355,430 1,378,850 846,630 18% 4 BUSINESS WORLD 694,975 133,353 189,823 228,454 143,345 3% PEOPLE'S 5 JOURNAL 580,030 154,277 179,415 161,282 85,056 2% 6 SUNSTAR CEBU 67,476 0 0 0 67,476 1% 7 INQUIRER LIBRE 242,088 0 83,422 99,745 58,920 1% PILIPINO STAR 8 NGAYON 181,756 0 53,352 71,040 57,363 1% 8
  • 9. 9 ABANTE 210,846 0 74,931 83,300 52,615 1% WALL ST. 10 JOURNAL ASIA 3,036,562 1,078,469 1,042,036 866,492 49,565 1% 11 MINDANAO TIMES 48,386 0 0 0 48,386 1% PEOPLE'S 12 JOURNAL T. 319,567 93,437 106,193 76,375 43,562 1% THE MINDANAO 13 DAILY MIRROR 41,615 0 0 0 41,615 1% 14 THE FREEMAN 143,470 31,958 32,072 46,984 32,456 1% MANILA 15 STANDARD TODAY 78,170 0 0 47,846 30,323 1% COMPUTERWORLD 16 PHIL. 268,546 89,560 84,118 67,291 27,578 1% 17 MANILA TIMES 209,862 70,635 60,360 51,654 27,212 1% 18 CEBU DAILY NEWS 25,785 0 0 0 25,785 1% 19 BULGAR 79,764 0 26,566 31,858 21,340 0% 20 MALAYA 114,046 34,414 33,033 28,337 18,262 0% 21 SUNSTAR DAVAO 14,842 0 0 0 14,842 0% 22 ABANTE TONITE 58,857 0 24,965 20,217 13,675 0% 23 TEMPO 36,173 0 10,944 13,133 12,095 0% SUNDAY INQUIRER 24 NEWSPAPER 93,109 33,211 29,139 24,332 6,427 0% 25 BALITA 13,093 2,359 1,847 3,232 5,656 0% PASA'YO 26 NEWSPLUS 1,532 0 0 0 1,532 0% PASA'YO 27 PEOPLEPLUS 1,439 0 0 0 1,439 0% 28 FUN PAGE 8,518 2,587 2,653 2,647 631 0% CHINESE COMM'L. 29 NEWS 53,732 13,072 20,519 20,141 0 0% 30 DAILY SUN 176 0 176 0 0 0% 31 KABAYAN 17,548 8,741 6,472 2,335 0 0% MANILA BULLETIN 32 SPECIAL ISSUE 1,113 1,113 0 0 0 0% MANILA 33 STANDARD 109,745 55,907 46,641 7,197 0 0% METRO 34 COMPUTER TIMES 9,993 9,551 442 0 0 0% 35 SINO-FIL DAILY 86,558 25,946 30,050 30,562 0 0% THE JUNIOR 36 INQUIRER SPECIAL 5,437 2,306 2,634 498 0 0% 37 TODAY 111,407 53,171 51,209 7,027 0 0% UNITED DAILY 38 NEWS 85,465 28,582 27,347 29,536 0 0% 39 WORLD NEWS 229,508 79,619 86,356 63,533 0 0% 29,547,85 Grand Total 5 7,618,007 8,693,995 8,550,727 4,685,127 Note: to date, Nielsen does not tabulate Business Mirror ad revenue 9