WORKSHOP
MODULE 1 Doing the business!
MODULE 2 Pre-call preparation and planning
MODULE 3 Opening the call and gaining acceptance
MODULE 4 The fact find
MODULE 5 Product presentation
OBJECTIVE
CONTENT SUMMARY
• To have participants understand their business’s aims, objectives and circumstances. • To have participants appreciate the business position
To be successful in sales, it is important that you use commercial sense to really understand your customer’s business. How? By understanding more about the business life and the customer loop. Learn about the business’s trading circumstances and identify ways to develop your customer’s business through known and unknown channels.
• To have participants identify the role of the buyer and the seller and the process of selling and deciding to buy • To have participants understand the importance of pre-call preparation • To have participants understand the importance of preempting objections and planning effectively to handle them with skill
Step one….. of the eight steps to effective selling. It is important to project professionalism in our sales calls, we do this through confidence and maintaining control whilst progress the sale to a satisfactory conclusion – this workshop helps identify the roles we play, prepare a pre call action plan and pre-empt early objections to handle effectively.
• Participants will learn how to maximise their chances of a sale through effective communication • Learn how to open the sale effectively, turning acceptance into genuine interest • To teach participants how to build rapport and recognise buying signals • To have participants understand the process the customer goes through when deciding to buy
Step two….of the eight steps to effective selling.
• Participants will identify key fact-find questions to define advertiser needs and establish a reason to buy • Identify buying signals and tools to help during a fact-find
Step three….of the eight steps to effective selling.
• To help the participants identify what makes a good product presentation • Learn to relate features, advantages and benefits (incorporating statistics) of the products they sell and relate them to the reasons why the prospect will buy
Step four….of the eight steps to effective selling.
Recognising the characteristics of highly effective sales allows the participant to adopt best practice and influence their own performance. Participants will prepare there own introduction scripts, role play and ‘make them their own so they can open calls with confidence and learn how to handle gatekeepers effectively Module includes effective communication exercises and tips and advice on building rapport, as well understanding the processes the seller and the buyer goes through.
This workshop is packed with brainstorming, role-playing exercises to gain skills which enable us to understand client’s needs and gaining the client’s commitment.
TIME MANAGEMENT COURSE
WORKSHOP
MODULE 6 Recommendations
MODULE 7 Overcoming objections
MODULE 8 Asking for the order and closing the sale
MODULE 9 Good customer service and applying excellent after-sales follow-up
This module results in participants completing product facts and sales statements, which they compile during the module as they learn to relate and present their products in the best possible light.
OBJECTIVE
CONTENT SUMMARY
• To have participants develop their questioning and listening skills to enable them to make needs-based recommendations.
Step five….of the eight steps to effective selling. This module focuses on linking the information established in the fact-find with the prospect’s reason to buy and being able to make a recommendation that meets these needs. Lots of roleplay exercises to cement key learning.
To have participants develop their skills in overcoming objections • learn the six categories of objections • understand why people object and how best to handle them • gain agreement and commitment from the customer
Step six….of the eight steps to effective selling.
• To have participants learn how to ask for the order • Effectively close the sale with all the right information
Step seven and eight of the eight steps to effective selling.
• Participants will learn how to react to customer demands and queries quickly and effectively. • Behaviour that has a positive or negative impact on customer service levels • Control – effective control of an interaction through structuring and questioning techniques and active listening. • Approachability – building rapport with customers by demonstrating empathy and engaging with them whilst being courteous and using positive voice and body language. • Responsiveness – Proposing appropriate solutions, explaining technical information and taking responsibility for the next steps. • Excellence – take proactive action to exceed customer expectations and outstanding outcome
Successful customer service and after sales skills mean more business for your business and for the salesperson – For the business: Greater success from good after sales service means clients are more likely to come back.
DURATION
OBJECTIVE
CONTENT SUMMARY
1 Day
• Participants will learn how to plan effectively and efficiently. • Setting realistic goals, prioritising effectively. • Learn and understand ‘time robbers’ and barriers that prevents them achieving including how to deal with interruptions. • Tips and advice on time saving techniques. • Participants will prepare time logs, analysis and an action plan to improve their performance.
Managing our time effectively helps us manage heavy workloads, reduce stress and succeed. This course focuses on regaining control of your time to improve productivity and effectiveness, in practical easy to follow exercises that will help you free up your time. This will enable you to do more important things in your work and home life.
NEGOTIATION SKILLS COURSE DURATION
OBJECTIVE
CONTENT SUMMARY
2 Days
• Participants will understand what negotiation is and why it is important. • Learn how to plan and prepare and structure negotiations effectively. • Develop behaviour styles. • Plan tactical strategies when dealing with concessions and pricing. • Understand common mistakes during negotiation.
We negotiate every day in a wide range of work and social situations. Successful negotiation can lead to increased profits and also customer satisfaction. This course takes you through the process of successful negotiations from pre-planning, understanding behaviours, tactics and the closing stages. Role-play exercises and development action planners ensure this course is lively and engaging.
This session simplifies the manner in which salespeople should approach objections. Objections are to be expected in a call. In some cases objections are red herrings, in other cases there are genuine doubts or concerns. Brainstorming, role-play and discussion helps participants handle objections with confidence.
This is often where salespeople will fall down. Participants will learn various ways in which to ask for the order and close the sale.
COMMUNICATION SKILLS COURSE DURATION
OBJECTIVE
CONTENT SUMMARY
1 Day
• Participants will learn the different methods of communication and when to use them. • Learn how to use their voice, interpret body language and become active listeners. • Learn tips on networking and refining presentation skills.
A highly practical workshop where you learn to use your voice, body language and listening skills more effectively.
Duration: 1 day.
PRESENTATION SKILLS COURSE DURATION
OBJECTIVE
CONTENT SUMMARY
1 Day
• The participant will learn simple tips and techniques on establishing professionalism and credibility when presenting. • Learn essential preparation and prepresentation planning. • Overcome presentation fears. • Be able to adopt practical presentation guidelines and structure. • Effective communication skills using voice, body language and active listening.
The ability to organise your thoughts and speak with confidence to an audience is a vital business skill. This module focuses on how we get our message across effectively when presenting. A light-hearted, relaxed course which allows delegates to practice different presentation skills and to build confidence.
Please Note: Modules 1 to 8 incl. duration = 2 days. w w w . s a l e s i n c . c o . u k S A L E S I N C
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PRICING
CONTACT DETAILS:
COURSE TITLE
DURATION
COST
BRIEF
Sales Skills
One Day
£350
Ideal for new to sales or basic refresher training (for content see modules 1-8) Delivered by one trainer
Advanced Sales
Two Day
£800
Same as sales skills with additional time on handling objections, role-plays 1 x trainer on day one; 2 x trainers day 2 to support role plays and team exercises.
Sales Excellence
Three Day
£1200
Same as Sales skill with additional objections, presentations and role plays. 1 x trainer on day one; 2 x trainers on days 2 and 3 to support role plays and team exercises.
Module 9 – Customer Service and After Sales Skills
One Day
£350
Ideal for Reception Staff, customer service staff, etc. Delivered by one trainer.
Time Management
One Day
£350
Generic course. Ideal for anyone looking to manage their time better. Delivered by one trainer.
Negotiation Skills
Two Day
£800
Generic course based on basic/intermediate negotiation skills. 1 x trainer on day one; 2 x trainers day 2 to support role plays and team exercises.
Communication Skills
One Day
£350
Ideal for anyone wishing to improve their communication skills in business. Delivered by one trainer.
Presentation Skills
One Day Two Day
£350 £800
Ideal for new to presentations or basic refresher training. Delivered by one trainer. 1 x trainer on day one; 2 x trainers day 2 to support role plays and team exercises. Delegates also have to produce & deliver a presentation.
BARBARA CAMPBELL, Director Mobile: 07771 999 888 email: b.campbell@salesinc.co.uk
SELLING SKILLS MODULE
ANNE ELAINE ESTEBAN, Director Mobile: 07771 605 839 email: a.esteban@salesinc.co.uk
City Retail Park, Movie House, Yorkgate, Belfast BT15 1WA Tel: 02890 751055 Fax: 02890 749983
Sales Inc., City Retail Park, Movie House, Yorkgate, Belfast BT15 1WA Tel: 02890 751055 Fax: 02890 749983 w w w . s a l e s i n c . c o . u k S A L E S I N C
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count Making every day
Business Plan Presented to News International September 2007
Presented to News International: Private & Confidential
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Contents 1. Executive Summary 1.1.1. 1.1.2. 1.1.3. 1.1.4. 1.1.5. 1.1.6. 1.1.7. 1.1.8. 1.1.9. 1.1.10. 1.1.11. 1.1.12. 1.1.13.
Gross sales forecast performance table Investment Keys to success Strategic direction Key objectives Mission Company summary Company ownership Company location Mentors The Partners Personnel Reasons why News International should outsource to Sales Inc.
2. The Marketplace 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5
Economic overview of Northern Ireland NI Investment NI Tourism NI Public Sector What does that mean to News International?
3. Newspaper Industry in Northern Ireland/Competitor Profiles 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 3.1.8
The Belfast Telegraph PropertyNews The Sunday Life Belfast Telegraph Digital Belfast Telegraph Television The Irish News Newsletter The Daily Mirror
4. The Advertising Market This section details where the business will come from, the key competitors, Industry facts and figures 4.1.1 4.1.2 4.1.3 4.1.4. 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 4.1.10 4.1.11
Advertising Categories Targeting segments Irish Media Marketplace analysis Regional newspapers Regional magazines Regional radio Regional TV Impact of broadband Advertising industry UK-wide Facts In the news
Presented to News International: Private & Confidential
15. NI Dailies, Demographic Comparisons 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5
Readership of daily titles Socio-economic groups Readership of daily titles Readership of daily titles Readership of daily titles
in Northern Ireland by age groups by gender by religion
16. SWOT for The Sun and NotW Sales Proposition in Northern Ireland 17. The Sun and NotW Competitive Comparison 18. The Sales Strategy 8.1.1 8.1.2 8.1.3 8.1.4 8.1.5 8.1.6 8.1.7 8.1.8
Sales and marketing plan Pricing The Sun gross monthly revenue estimates years 1, 2 and 3 NotW gross monthly revenue estimates for years 1,2 and 3 Combined gross revenue performance years 1,2 and 3 Combined net revenue performance years 1,2 and 3 Trading terms Advertising agency agreements
19. Financial Plan - Profit and Loss 9.1.1 9.1.2
P&L first four months, Years 1,2 & 3 based on £5 rate card P&L first four months, Years 1,2 & 3 based on £6 rate card
10. Financial Plan - Cash Flow 10.1.1 Cash Flow first four months Years 1,2 & 3 based on £5 rate card 10.1.2 Cash Flow first four months Years 1,2 & 3 based on £6 rate card 11. What Sales Inc. Needs from News International 12. Other Appendices
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Executive Summary ales Inc. proposes to establish a sales house for your organisation in Belfast, one that would be contracted to represent the Northern Irish edition of The Sun and News of the world. We would assume sole responsibility for the development of advertising streams within the local edition of The Sun and the News of the World and we would accept the financial responsibility of an office and a sales team to accomplish this objective.
S
We see the role of Sales Inc. extending to the active presentation and negotiation of new business and when applicable develop existing direct and agency business. Sales Inc intends to develop new revenue streams estimated at approximately £800,000 in the first year, £1,040,000 in the second year and £1,248,000 in the third year. This growth is expected to continue to develop and has potential to reach approximately £2 million in five years.
(1.1.1)
Gross sales forecast performance (£)
The opportunity to develop these revenue streams is supported by the high readership that both these titles attract.
(Source: NI TGI 2006) Presented to News International: Private & Confidential
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(1.1.5)
Investment
Sales Inc. key objectives
This venture requires £130,000 of investment to support basic office start-up and trading for the first six months. Together the co-owners intend to meet this investment which also covers working capital requirements. The partners have also secured an additional investor should he be required.
(1.1.3)
Sales Inc's keys to success are the co-owners • experience and knowledge of the newspaper advertising Industry, • awareness and understanding of the Northern Irish market place, • relationships with key business decision-makers, and • track record of sales achievement
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• • • •
Invest in new sales office Recruit sales team Invest in sales people to pursue sales growth Open and pursue direct lines of communication through networking channels • Establish contracts with advertisers for long-term advertising commitments • On behalf of our client, provide effective communication to new and potential customers through targeted efforts, positioning our client as a highly effective local advertising platform • Formalisation and pursuit of the sales and marketing strategy, namely, advertising agencies and direct accounts. Specifically, retail, entertainments, motors and others.
In summary, it is our aim to position Sales Inc as a highly effective and professional advertising sales team by providing effective and responsive advertising to our clients so that they will continue to utilise our services going forward.
(1.1.4)
Strategic directions • Invest in set-up of office and new sales team in order to establish the business and turn a profit. • Develop the business through establishing meaningful business relationships with prospective advertisers in order to persuade and entice them to advertise in our client's publications. • Grow market share and revenue for the mutual benefit of our client and Sales Inc.
Presented to News International: Private & Confidential
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(1.1.8)
Misson
Company Ownership
Sales Inc. will enter the Northern Irish marketplace with a fresh opportunity and a new philosophy - we will strive to do everything better.
Our services will be provided by experienced sales professionals. On start-up and on an ongoing basis, the partners will take an active role in presenting and negotiating on key accounts. Sales Inc will also employ in the first two years of business four field sales executives, two telephone sales executives, and one full time and one part time receptionist/sales support. The management of Sales Inc. consists of the co-owners, Barbara Campbell and Anne-Elaine Esteban. To begin with, the partners will also be scheduling appointments and coordinating services along with the receptionist / sales support. The remaining new recruits will be phased in within 24 months of business (subject to business demands).
• We will think, be innovative and communicate with our customers and each other. • We will always try to be one step ahead of our competitors by creating competitive advantage. • Each day we will see as an opportunity to do better. • We want to create a passionate team of people whose dedication and expertise will deliver real value, time and again to our customers. • Our unique hands-on approach will deliver innovative thinking, determination and persistence towards our goals. • We will put ourselves in the advertisers' shoes in order to understand their business needs. • As a company, we will share our ideas, values, interests and goals. • To our customers, we will make a strong business pledge and keep to it - we want to make a difference we will make every day count.
Sales Inc. seeks to serve the Northern Irish marketplace through the provision of advertising platforms in The Sun and News of the World. We value our relationship with the marketplace and hope to communicate to them through the provision of a consultative sales approach, matching potential advertisers' needs with outstanding personal service. Our commitment to our customers and that of News International will be reflected through honest and responsible business. Sales Inc aims to properly re-position The Sun and the News of the World in the Northern Irish marketplace through the provision of local advertising platforms, run-of-paper advertising and the development of a classified section.
(1.1.9)
Company Location The Sales Inc. office will be located in the Greater Belfast area on one of the main commuter routes. The proposed office space is 2,000 sq ft in order to accommodate ten sales staff and to facilitate a reception area as well as meeting room facilities. The office will be specified to a high standard, inclusive of ICT equipment including broadband, an ISDN line, fax and telephone system.
(1.1.7)
Company Summary Sales Inc. will be a limited company and will be Northern Ireland's first independent print media sales house, contracted to represent publishers and media owners. Sales Inc. will present, negotiate and develop advertising streams for its contracted customers within the local marketplace..
Presented to News International: Private & Confidential
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Mentors Both partners will be taking hands-on management roles in the company. In addition, they have assembled a board of advisors to provide additional management expertise. The advisors are:
Michael McAdam
Lynne Doherty
MD of the Moviehouse Cinema Group
MD of the Lites Group NI
Michael McAdam has been in business in Northern Ireland for more than 20 years and is the owner of Northern Ireland's largest multiplex cinema group, with cinema complex's in Glengormley, Belfast, Maghera and the recently acquired Jet Centre complex in Coleraine. Michael's ventures extend to the restaurant business and he owns a children's activity/ entertainment complex. As if that wasn't enough, Michael also finds time to be a Director and Partner at Drumboe Park Greyhound Stadium, Northern Ireland's premier greyhound stadium, due to open in September this year. A Newtownabbey man. Michael is certainly conscious of the community where he was born and bred. Not only does he employ more than 200 local people, Michael believes in giving something back to the community too. He does this by working as a Director of Lisburn Distillery Football Club, supporting local charities through charity screenings at his cinemas and sponsoring local talent, such as young film-maker, Stephen Bradley. Michael is also involved in the charity Haven, which was set up to help people with drink and drug-related problems. Michael's interest in the media was kindled by his time spent at Ulster Television as a vision mixer and more recently, as a member of a consortium which bid for a commercial radio licence in Belfast. Michael is committed to Sales Inc. and to sharing his business knowledge and experience. Peter Gribben Partner at Hill Vellacott Chartered Accountants
Peter worked as Audit Manager in KPMG for a number of years and took over as Director of Small Business. He then headed up the small business unit until 1995 when he took the job as Financial Director of JP Corry Group. After 3 years Peter then set up his own accountancy practice which subsequently merged with Burns Hunt in 2002 and afterwards with Wilkinson Hegarty in 2006 to form Hill Vellacott with four partners employing 35 staff. Peter is also a part-time lecturer in University of Ulster and mentors small businesses for NISBI. He has a large portfolio of clients covering all aspects of NI business, from businesses with a turnover of £200k-£300k to clients with a turnover of £25m. Sales Inc. will benefit from Peter’s financial guidance and business acumen. Presented to News International: Private & Confidential
Lynne Doherty has 17 years' experience in the local business arena - 12 spent in press servicing and developing the business community and five years with Lites Group NI, which provides managed people solutions. Over the past 15 years, she has been responsible for recruiting and training of many of the most recognisable figures in Ulster's media market. In her career to date, she has pioneered many new initiatives and was responsible for the formation of the co-partnership division within the Sunday Life newspaper. Her career has spanned many sectors and she was instrumental in the introduction and remodelling of the Newsletter business supplement. Lynne's success as MD for Lites Group may be attributed to an extensive network of relationships within leading UK blue chip companies and in organisations and firms across Ulster's private and public sectors. Lynne's willingness to share her network, marketing and business expertise with the partners of Sales Inc. will be invaluable. Russell Campbell Journalist & Writer
Russell has worked in the media for 21 years, 13 of those in the regional newspaper arena and seven as editor of Northern Ireland's longest established and best read regional business magazine, Ulster Business. After a time in public relations as Director, Corporate Communications for Life Communications and latterly, as editor of Northern Ireland's only public policy journal, agendaNI. Russell has decided to set himself up as a freelance journalist and writer. Russell's experience within the media will provide Sales Inc. with practical support in ensuring our communications are always ahead insightful and impactful.
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(1.1.12)
The Partners
Personnel
Partners, Barbara Campbell and Anne-Elaine Esteban, have collectively more than 37 years' advertising sales experience to call upon, including a decade spent at management and senior management level in the highly demanding and competitive advertising industry for publishers such as Thompson Regional Newspapers, Century Newspapers, Trinity Mirror, Independent News & Media and the Yell Group. However, it's in the newspaper industry that they learned to ply their trade and become award-winning sales people and latterly, experienced and effective trainers and senior managers who are easily identified by their enthusiasm and passion for the industry. Anne-Elaine's experience in the establishment and development of the Daily Mirror's sales office provides precious insight into the 'do's and don'ts' of adopting a local advertising platform in a national title, and Barbara's experience working in the most prominent indigenous title in Northern Ireland gives Sales Inc. valuable insight into how the Belfast Telegraph group might think and act.
2007/08 In September, with the set up of the office, we will commence a recruitment campaign to secure a full-time sales support / receptionist. It is also envisaged that a recruitment campaign will commence four months later in January 2008, advertising three vacancies, one for telesales and two field sales executives, with a view to appointing sales professionals into these positions in March and April 2008. An additional sales executive will also be appointed in June 2008. Depending on the success of the recruitment campaign in February, we will determine whether we need to extend the campaign through to March. (This has been built in to the plan). 2009 As the business revenue streams grow, an additional telesales as well as field sales executive will be required. The advertising campaigns will commence in November 2008 with a view to commencing employment in February 2009.
Contact details: Barbara Campbell 19 Millwater Lodge, Straid Road, Ahoghill, Ballymena BT42 2RS
2010 To continue to drive revenue, another recruitment campaign will commence in October/November 2009. The appointment of an additional sales support and another field sales executive will bring staff numbers up to a healthy four sales executives, two telesales executives and two sales support executives.
Tel. Home 028 25 871809 Mobile. 07833 518459 Email. barcamp@hotmail.co.uk Anne-Elaine Esteban 14 Bramble Glen, Old Carrick Road, Jordanstown, Newtownabbey BT37 OLA Tel. Home 028 90 860673 Mobile. 07771 605839 Email. a.esteban@btinternet.com
The costs below reflect the sales personnels' total packages and, therefore, include, for example, bonuses and cars. Staff timeline:
2007/2008
2009
ADDITIONAL SALES STAFF
Timing
Salary Circa
Reception/ Sales Support
Oct 07
£21,000 x1
Telesales Executive
Mar 08
£32,650 x1
Feb 09
£32,650 x1
Field Sales Executive
Apr 08 Jun 08
£39,650 x2
Feb 09
£39,650 x1
Total Cost
£132,950
Presented to News International: Private & Confidential
Timing
2010
£72,300
Salary Circa
Timing
Salary
Jan 10
£12,100 x1 Part-time
Jan 10
£39,650 x1
£60,650
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Why News International should outsource to Sales Inc: 1.
2.
Credibility with customers is important in securing high value business. Sales Inc. is experienced in the newspaper industry and known in the Northern Irish marketplace. The partners of Sales Inc. are prepared to invest both financially and personally into the success of this venture, striving to achieve maximum results.
3.
Contracting to Sales Inc. is low risk, low cost and high return.
4.
Sales Inc. understands the newspaper industry in Northern Ireland from both a regional title perspective and that of a national/regional hybrid, thus it is capable of achieving maximum possible return.
5.
Sales Inc. is experienced in sales management and knows how to maximise sales opportunities
6.
This arrangement will allow you to focus your efforts on your core business without the distractions of a demanding sales department.
7.
Sales Inc. will employ experienced salespeople to understand deploy and value the sales process to deliver results.
8.
Sales Inc. knows the characteristics of a good salesperson and will develop its sales team to be highly respected, effective and professional with News International's ethos firmly in mind.
9.
On a daily basis, Sales Inc. will drive sales with its team to determine the status of sales opportunities; everything we do will be focused on closing sales or ensuring opportunities are being maximised.
13. News International will reap the benefits without any employer liability. 14. Sales Inc is currently developing an extensive database of customer profiles which will be fit for purpose for the launch of the business. 15. Accounting time and costs associated with an advertising department can be extensive. Sales Inc will handle client billing and debt recovery.
Conclusion Using Sales Inc. will provide you with tremendously good value, with the owner partners committed to the success of the venture.
10. In the function of selling, salespeople must get involved with a good deal of marketing, prospecting, maintenance of accounts, client management and networking, administration etc. Sales Inc. is experienced in the multitasking approach that is required when managing a successful sales team. 11. By contracting out to Sales Inc., you don't have sales staff salaries to pay nor the expense of setting up an office and recruiting a team. 12. Using sales Inc. will be the closest thing to having your own sales department without the expense or the headaches let us take on the burden.
Presented to News International: Private & Confidential
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The Market hroughout the 1990s, the Northern Irish economy grew faster than did the economy of the rest of the UK, due in part to the rapid growth of the economy of the Republic of Ireland and the so-called 'peace dividend'. Growth slowed to the pace of the rest of the UK during the downturn of the early years of the new millennium, but growth has since rebounded.
T
(2.1.1)
Economic Overview of Northern Ireland In 2005 the Northern Irish economy is estimated to have grown by 3.2 per cent, almost twice as fast as the UK as a whole, and future growth is expected to be stronger than that of the rest of the United Kingdom [1], though lower than that of the Republic. In April 2007, a Halifax survey found Northern Ireland's average house price to one of the highest in the UK, behind only London, the south-east and the south-west. It also found Northern Ireland to have all of the top 10 property 'hot spots', with the Craigavon and Newtownards areas increasing their prices by 55 per cent.[2] Unemployment in Northern Ireland has decreased substantially in recent years, and is now 4.5 per cent, which is amongst the lowest of the regions of the United Kingdom, down from a peak of 17.2 per cent in 1986.[3] Youth unemployment and long-term unemployment have fallen most quickly. Despite low unemployment, working-age economic inactivity is 28 per cent, which is the highest of any UK region.[4] Northern Ireland's macro economy is also characterised by considerably longer actual working hours and lower gender income disparity than in the United Kingdom as a whole.[5] [1]
Economic Performance Briefing. Northern Ireland Executive. 25 January 2006. Retrieved on 17 June 2006. NI dominates housing hotspot list BBC News 24 April 2007 "Northern Ireland's economic fears". Ryan, Orla; BBC, 22 June 2001. Retrieved on 17 June 2006. [4] Economic Overview. Northern Ireland DETI. 2006. Retrieved on 17 June 2006. [5] Economic Overview. Northern Ireland DETI. 2006. Retrieved on 17 June 2006. [2] [3]
investment of over £800 million in the riverside area. Belfast's arts-orientated Cathedral Quarter has also seen substantial investment. The region is very strong in the software, financial services and telecoms sectors, but is also witnessing clusters of excellence emerging in areas such as life and health sciences and niche manufacturing. World-class businesses with a presence in Northern Ireland include Microsoft, HCL Technologies, Seagate Technology, Invista (formerly DuPont), Bombardier Aerospace, Caterpillar, Allstate, Liberty Mutual, Abbey, Nortel Networks and Halifax. Northern Ireland's economy has been transformed in recent decades, moving from a traditional manufacturing base to a service-led, outward-looking knowledge economy. The country has shown it can adapt to change. Northern Ireland in the twenty-first century is fostering entrepreneurship and taking innovation and knowledge-based products and processes to the world marketplace. Northern Ireland's excellent academic base and intellectual property reserves have encouraged an influx of knowledgebased inward investment projects. Over 700 foreign investors now operate in Northern Ireland, employing 70,000 people. Recent key investors include Microsoft, Caterpillar, Seagate Technology and HBOS.
(2.1.3)
Tourism Despite the negative image of Northern Ireland held in many foreign countries, on account of the Troubles, tourism is an important and growing part of the Northern Irish economy. In 2004, tourism revenue rose by seven per cent to £325m, or over one per cent of the local economy, on the back of a rise of four per cent in total visits to 2.1 million in the year.[1] Tourism is considered likely to become one of the main growth areas of the economy in the near future, with the continuation of the peace process and the normalisation of the image of Northern Ireland internationally. [1]
(2.1.2)
NI Investment Since the signing of the Good Friday Agreement, investment in Northern Ireland has increased significantly. Most investment has been focused in the Belfast and Greater Belfast areas. Major projects include the £400 million Victoria Square retail development in Belfast City Centre. The city will also see the largest waterfront development in Europe with the Titanic Quarter scheme, costing over £1,000 million and taking seven years to complete. The Laganside Corporation has been at the forefront of the redevelopment of the riverfront along the banks of the River Lagan. The Corporation, which was only recently dissolved after meeting all its objectives, oversaw the
Presented to News International: Private & Confidential
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Economic Performance Briefing. Northern Ireland Executive. 25 January 2006. Retrieved on 17 June 2006.
(2.1.4)
Public Sector The public sector accounts for 63 per cent of the economy of Northern Ireland, which is substantially higher than the 43 per cent of the United Kingdom as a whole. In total, British government subvention totals £5,000m, or 20 per cent of Northern Ireland's economic output.[6] [6]
Alan Ruddock, The Times, 8 January 2006.
Expenditure £9.2m in 2003/04 on campaign advertising in Northern Ireland is 1.5 tiles higher per capita than the UK average.[7] [7]
(Source: AV Brown Advertising Ltd. Oct 05)
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(2.1.5)
What does this mean to News International? Productivity in Northern Ireland has shown an upward trend in recent years and the economy continues to perform well against a range of economic indicators. In short, the marketplace is now healthier than ever - we have self-government, enduring peace, tourism on an upward trajectory and house prices that need to be seen to be believed. In short, business is on the up. There is no better time to exploit and develop new revenue streams.
Presented to News International: Private & Confidential
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(3.1.2)
Newspaper Industry in Northern Ireland
Propertynews
here are four regional dailies, one being a national/regional hybrid. They are The Belfast Telegraph, Newsletter, Irish news and The Daily Mirror. In the competing Sunday market, there is the Sunday Life, Sunday World, Sunday Mirror and The People.
T
(3.1.1)
The Belfast Telegraph The Belfast Telegraph is a daily evening newspaper published in Belfast by Independent News and Media. Unlike its Londonbased stablemate, The Independent, the Belfast Telegraph is conservative in outlook. In the context of Northern Irish politics, the Belfast Telegraph tries to attract readers from across the community, though it's readers are prodominantly from the prodestant community. According to the Audit Bureau of Circulations, the paper has an average daily circulation of 90,285. The Belfast Telegraph readership figure is 247,000 and is the largest local newspaper, despite falling sales. It was awarded the Press Gazette's Regional Newspaper of the Year and Daily/Sunday Newspaper of the Year (July 2006) titles and Newspaper Society Regional Newspaper of the Year, 2006 The morning compact edition, launched in March 2005, has struggled to replicate the evening newspaper's success. Its editorial content is more tabloid-orientated, with a greater entertainment story count than the evening paper. Supplements in the Belfast Telegraph are as follows: Business Telegraph (Mon); public sector jobs (Tue); Local Heroes - local sport (Wed); Homefinder (Thur); Jobfinder and 247 Entertainement supplement (Friday) and Weekender (Sat) Independent News & Media also holds the printing contract for News International, the Daily Express, Daily Star, Daily Telegraph, Daily and Sunday Mirror, the People and an array of other titles. In March 2006, Independent News and Media (INM) acquired Irish property web site, PropertyNews.com for an undisclosed sum. The acquisition of PropertyNews.com is part of INM's strategy of becoming the leading classified website in every market in which it operates.
Propertynews.com lists thousands of properties for sale or rent, including new builds, residential resales, commercial property and building sites. The website has the support of all leading estate agents in Ireland. The site also lists overseas properties. PropertyNews.com lists more than 20,000 properties for sale, 4,000 of them in the Republic of Ireland and 99 per cent of estate agents in Northern Ireland list their properties on the site. The internet site was launched in 1998. It was in May 2005 that PropertyNews.com extended its franchise into the Republic of Ireland, and within that time, it has gained a market share of 70 per cent in County Donegal and an estimated 25 per cent across ten other counties. Site traffic reached a record high in February 2006 of 10m page impressions, making PropertyNews.com the most popular website in Northern Ireland. The Belfast Telegraph website is the third largest Northern Irish site. PropertyNews.com currently has 350,000 unique visitors a year which has doubled in two years, with 10 per cent in RoI. INM has also acquired the PropertyNews monthly newspaper. Estate agents distribute this newspaper through a network of more than 200 offices.
(3.1.3)
The Sunday Life This is a tabloid newspaper with greater coverage of scandals, paramilitary scoops and other, more feature-oriented news. It is particularly strong on sport. Sunday Life launched Hotshots on Sunday, August 20. Hotshots is a weekly pull-out football supplement which features news, top reports, results and editorial comment regarding local, national and international games.
(3.1.4)
www.belfasttelegraph.co.uk Launched in 1995, The Belfast Telegraph website is one of the most popular in Northern Ireland with 5.5 million page impressions each month* and 350,000 unique users each month*. Recently awarded the CIPR/BT Press Broadcast Website of the Year 2006, Belfast Telegraph Digital enjoys an ABC1 audience profile, with 55 per cent of online readers being middle management / professional**. *
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count
March 2006 **Source: BT Digital Site Survey Apr-May 2004.
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(3.1.5)
(3.1.8)
Belfast Telegraph Television
The Daily Mirror in Northern Ireland
Launched February 7 this year this is part of the new, interactive website that provides a rich new experience in Northern Irish media. Updated three times a day, Belfast Telegraph Television claims to be a first in regional publishing in the British Isles.
The Daily Mirror in Northern Ireland set up an independent sales office in January 2002. It was in that year under the leadership of Editor-in-Chief, Craig MacKenzie, that the paper won the prestigious NI Newspaper of The Year Award. This award has never been won by a national title before. The judges claimed that the title had a perfect mix of local and national news, giving readers everything they needed under one title. They have introduced themselves to both communities by sponsoring concerts and sporting events, particularly with the Irish League and the Amateur Football Association. The Daily Mirror competes against the local indigenous titles by offering a classified advertising section at the back of the paper. The platforms include motors, travel, articles for sale, recruitment and entertainment. Today, the Daily Mirror in Northern Ireland boasts of having the youngest readership demographic, the most readers outside of the Greater Belfast area and the highest number of male readers of any local daily title. (As you will see later in the document this is not the case). Their claim is, "The Daily Mirror leads the way for news, sport and entertainment with 226,000 readers everyday"' Supplements and magazines: Sunday: M Celebs; Monday: Mania Premiership supplement, Irish League supplement; Tuesday: Mirror FC Junior Football supplement; Friday: The Box Office Weekend Entertainment Guide, Rear View Mirror Motoring Guide; Saturday: We Love Telly Magazine, Racing Post Extra Racing and Sports Betting Supplement.
(3.1.6)
The Irish News The Irish News is a compact-sized newspaper based in Belfast. It is broadly Irish nationalist in outlook. It focuses primarily on Northern Irish content, although it is also available in some parts of the Republic of Ireland. It is the only independently-owned daily newspaper in Northern Ireland and has been so since its launch on August 15, 1891 as an anti-Parnell newspaper. In June of 1982, the paper came under total control of the Chief Executive, James Fitzpatrick and Managing Director, Dominic Fitzpatrick, and the fortunes of the paper began to change dramatically. It is well known for its coverage of Gaelic Games and the GAA. The Irish News also has radio interests as it has a stake in three recently launched local radio stations, Five FM, Six FM and Seven FM. It recently launched a service entitled INTV. It is similar in style to Utube and features television broadcast journalists reporting on and discussing topics mentioned in the paper. The site's address is IN.tv.
(3.1.7)
The Newsletter The News Letter is one of Northern Ireland's main daily newspapers, published Monday to Saturday. It is the oldest English language general daily newspaper still in publication in the world, having first been printed in 1737. The newspaper's editorial stance and readership is strongly unionist. Its primary competitors are the Belfast Telegraph (which is moderately unionist in outlook) and the Irish News which adopts a largely Irish nationalist perspective. The News Letter was part of the Trinity Mirror newspaper group until late 2003 when it was acquired by the 3i group advised by former Mirror Group Newspapers Chairman, David Montgomery. It is now operated by a holding company entitled Local Press Ltd, part of Johnston Press.
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The Advertising Categories ewspaper advertising is measured within the categories of agency (encompasses all business types) followed by local direct retail, motors, property, recruitment, entertainments, holidays and others. The key focus for Sales Inc. is to drive display advertising streams in The Sun and News of the World, with a view to developing a classified marketplace within five years. The categories that will yield the quickest and most
N
significant return fall into agency business and on the local front, retail, motors, holidays, entertainments and others. The following charts detail the different business categories and an estimate of how they could perform. This estimate is based on competitor activity over a period of five years. This category breakdown for year one is replicated for years two and three.
(4.1.1)
Estimated advertising performance within the various display business categories.
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(4.1.4)
Targeting Segments To aid a full understanding of the true potential of each of the business categories, we have split the categories into segments. These segments represent the types of businesses that fall into each category. These categories/businesses are potential advertisers for The Sun and the News of the World and Sales Inc. Intends to profile each and every business and target them accordingly.
NI Business
The table below shows the segments within each category and the number of businesses in Northern Ireland that fall into each of the segments. Sales Inc. is currently updating its extensive database of contacts within these categories. Source: InvestNI Business Intelligence site. NI Businesses taken from the Dun and Bradstreet database. Figures quoted in table taken from InvestNI
Business Category
Segment
Business Category
Segment
Others
Finance continued:
Retail
Business Services
7223
General clothing
233
Banks
159
Woman's clothing
598
Insurance & Pension
136
Infants/children's retailer
94
All segments across all categories
120
Men's clothing
246
Advertising
Furniture, lighting & household
655
Agencies & creative
Electrical appliances
378
Communication
Hardware, paint DIY
364
Telecommunication
Books, newspapers & stationers
420
Public Service
Flooring
187
Public Service & Administration
48,830
Office supplies
69
Jewellers
162
Bars
970
Sports goods
340
Travel agents
235
Food & tobacco
1080
Hotels, Pubs & Restaurants
3402
Pharmaceutical, cosmetic and toiletries
525
Hotels
297
Specialist
1389
Camping/Short stay
200
Mobile phone
42
Restaurants
1924
Dealerships
647
Garage & motor repairs
977
Agency
Entertainment & Tourism
Motors Others
Finance
Number of NI Businesses
128
83
Insurance & Retail
25032
Parts & accessories
402
Finance/ consumer credit
216
Forecourts selling fuel
421
Investment trust
502
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(4.1.5)
Irish Media Market Analysis With the rise of local radio, newspapers, magazines and television - as well as a rise in standards of local content advertisers have never been in a better position in Ireland. Ireland's regional media is powering ahead: over the past 12 months, there has been a spate of regional newspaper launches in the Republic and as many as 10 new regional radio stations are expected to start broadcasting during the next few months. Local media is a significant part of Ireland's media mix due to the country's high rural population. According to the most recent censuses, conducted in 2001, around one-fifth of Ireland's total population of 5.6 million lives in the three largest urban areas of Dublin, Belfast and Cork. The remainder is scattered throughout smaller settlements, such as Kilkenny and Carlow in the Republic and Ballyclare and Banbridge in Northern Ireland, with populations typically not exceeding 20,000. Louise Fitzpatrick, Research Manager at Initiative Dublin, says: "The improvement in the calibre of local media in Ireland has helped local media retain audiences, preventing it from being perceived as staid and dated." Michael Carraher, Chief Executive of the Association of Advertisers in Ireland, adds: "Advertisers have a good choice of options in local radio, paid-for newspapers and free sheets, and the community TV stations that are coming on-stream."
(4.1.6)
Regional Newspapers In newspapers, the largest player in the market is Johnston Press, which has expanded its portfolio with a number of new launches and is believed to be planning a new print centre, to be located in Limerick. Thanks to its newly launched freesheets, for example the Kilkenny People Weekender, Johnston Press has added 105,000 copies to its existing paid-for circulation of 136,000 in the Republic year-on-year. The local newspaper market is equally competitive in Northern Ireland. Generally speaking, local paid-for weekly titles in Northern Ireland are seeing a decline in circulation, with the exception of the Mourne Observer in Newcastle, Co Down, which was re-launched last summer as a full-colour tabloid. The paper is now the largest-selling local newspaper in Co Down, with a weekly circulation of 11,440. Northern Ireland's daily papers are showing mixed fortunes. According to Richard Ross, Managing Director of Belfast agency AV Browne, The Belfast Telegraph has shown a 6.4 per cent reduction in circulation year-on-year. He says: "Over the past 10 years, in common with worldwide trends in evening newspapers, the title has lost 30 per cent of its circulation. However, it is fighting back with new platforms such as Local Heroes and Just For Sale." Michael Brophy, Chief Executive of Independent News & Media Northern Ireland, says: "Content in the Belfast Telegraph
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is being driven towards capturing a new and younger readership. No other paper in Northern Ireland offers such a comprehensive package of rolling news coverage, with four editions printed throughout the day and many supplements. The Belfast Telegraph continues to be the best-read local newspaper with a circulation of 90,285, while our sister paper, the Sunday Life, tops Sunday sales with a circulation of 77,506." Noel Doran, Editor of the Irish News, says: "Northern Ireland is the most competitive part of the UK newspaper market, with 17 titles from Britain and Ireland available each morning." In defiance of the cluttered market, the Irish News, named Regional Newspaper of the Year at the 2007 Newspaper Awards in London, was the only UK regional morning newspaper to record a positive sales trend year-on-year.
(4.1.7)
Regional Magazines Compared to the recent proliferation of local newspapers, Ireland's regional magazines have been slow to expand. In the north, Tatler Publications, which is among the leading local magazine publishers, claims a readership of more than 250,000 for its headline title, the Ulster Tatler. Other success stories include Northern Ireland's Homes Interiors & Living magazine, and Dublin's Munster Interiors, published by Pembroke. But despite the popularity of interiors and entertainment titles, many national magazine publishers are sceptical of the regional model. For example, listings magazines have come and gone in locations such as Galway, despite their high editorial quality. Jane McDonnell, publisher of The Gloss, a women's style magazine launched last year, says she has not considered regionalising, while Norah Casey, Managing Director of Harmonia, says: "I'm not sure that there is room for regional magazines. The regional advertising pool is relatively small and with more regional newspapers and radio stations competing for a slice of the cake, it could be difficult for regional magazines to survive."
(4.1.8)
Regional Radio Local radio has maintained its market presence in the face of the rapid expansion of local newspapers. The Republic now has 26 local radio stations, although many have been bought out in the wave of consolidation that has swept the industry in recent years. One successful station, Highland Radio in Co Donegal, which has the highest audience share of any local station in the country at close to 70 per cent, has been put up for sale by owners, Emap. <continued>
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(4.1.8) <continued> One key player in the Republic is UTV, whose stations in Cork, Limerick and Louth/Meath are all maintaining their market-leading positions. Thomas Crosbie Holdings recently spent EUR14m on majority stakes in Waterford's WLR FM, as well as in the youth station, Beat 102-103. Spin 1038's sister station for the south-west has been granted an independent regional radio licence and the Broadcasting Commission of Ireland is seeking a licence-holder for an easy-listening station for older listeners. In Northern Ireland, the market leaders are Downtown Radio and Cool FM: the most recent Rajar figures, for March 2007, gave Downtown a weekly reach of 256,000 (8.8 per cent market share), while Cool FM had a weekly reach of 327,000 (15.3 per cent market share). The two principal stations have been joined by a plethora of new local stations such as Q105 FM; some are so new, such as Five FM in Newry, that their first audience figures have not yet been released. However, regional radio stations are starting to lose their appeal for media agencies due to an increase in advertising rates of around 17.5 per cent. Dave Winterlich, Managing Director of Carat Ireland, explains: "Regional radio is looking less attractive due to significant year-on-year inflation. From an agency perspective, it is unacceptable to accept double-digit rate increases without audience growth to back it up."
(4.1.9)
Regional TV Regional TV has yet to develop as a serious medium, although one exception to the rule is City Channel, which started 18 months ago on what has now become the UPC cable network. In addition to Dublin, City Channel broadcasts local programming in Galway and Waterford: homes respectively reach 28,000 and 26,000. The channel's programming costs are as low as EUR135 an hour. The other major development in regional TV is the roll-out of SCTV Digital, based in Carrigaline, Co Cork, which started as a re-broadcaster, but now has a licence to deliver digital services throughout Munster. SCTV, which has around 20,000 subscribers, of which 6,000 are digital, offers up to 60 channels and is currently expanding its digital service from the Cork area into parts of counties Kerry and Waterford. But the big drawback to local programming is the cost of producing acceptable content; if someone can crack that conundrum, regional TV could flourish. Joe Dalton, Managing Director of Precision Media, says: "Local TV could become a reality, especially once DTT (Digital Terrestrial Television) is established, allowing for regional programming and advertising opt-outs. In five years' time, there will be many new, local TV stations." However, Gary Power, Managing Director of Saor Communications, feels that regional TV has not been as buoyant as the other regional media platforms. He says: "Viewing levels are fragmenting and this will only continue as Presented to News International: Private & Confidential
the digital population grows with the roll-out of broadband. Local TV stations have failed to capture consistent viewing by regional audiences and are risking further dilution of audience share by becoming too niche." None of the established terrestrial broadcasters in RoI - RTE, TV3, TG4 and now Channel 6 - offer regionalised programming, although RTE has a substantial production facility in Cork. In Northern Ireland, Londonderry's c9tv, launched in October 1999, is a free-to-air local television service that broadcasts to more than 230,000 people in Londonderry, Limavady, Coleraine and Strabane. The station's local programming includes news, sport, current affairs and local interest. In the general television market in Northern Ireland, UTV's peak-time audience share (33.5 per cent in 2006) is substantially ahead of the ITV network share, thanks to firm regional audience ratings coupled with strong local advertising demand.
(4.1.10)
The impact of broadband Hanging over all forms of regional media is the challenge posed by the roll-out of broadband, which will enable greatly increased consumption of local media through the internet such as online regional newspapers and web TV. Shenda Loughnane, Managing Director of digital agency, Ican, says: "Advertisers have really begun to appreciate the value of online over the past nine months or so, so the improvement in broadband coverage throughout Ireland will enhance the development of online advertising and create an extra element of competition for local media." In Northern Ireland, which is 100 per cent broadband-enabled, BT Wholesale provides broadband services to numerous internet service suppliers, including BT Retail, which supplies broadband to more than 260,000 homes and businesses. However, the number of broadband subscribers in the Republic stands at just 500,000, or 14.5 subscribers per 100 inhabitants. More than 420,000 broadband users subscribe to Eircom, although up to 50 providers are active, including Digiweb and Perlico. Eircom aims to reach close to 700,000 broadband subscribers by the end of the year. Currently, the Republic is ranked 23rd out of 30 EU countries for its broadband reach. Colm Piercy, Managing Director of Digiweb, says: "Broadband access will bring new economic models and opportunities to remote and rural regions, enabling regional media producers to reach out to wider audiences, nationally and internationally." He adds: "The availability of ubiquitous broadband will act as a disruptor to the content producer and content consumer format of broadcast media in Ireland, as it has existed for the past 40 years. Broadband will provide a means and an opportunity for the creativity and innovation for which the Irish are known to be released and shared, with many people becoming media producers and consumers simultaneously." Media Analysis : Media Week written by Hugh Oram 6-Jun-07
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Advertising Industry Total advertising expenditure in the UK by media sector current prices £m MEDIUM
1991 1992 1993 1994 1995 1996
1997 1998 1999 2000 2001 2002 2003 2004 2005
National Newspapers
1121
1155
1220
1336
1433
1510
1650
1824
1991
2252
2062
1930
1902
1974
1919
Regional Newspapers
1628
1640
1715
1871
1963
2061
2238
2390
2483
2762
2834
2878
2962
3132
2994
Consumer Magazines
506
466
448
499
533
583
660
709
727
750
779
785
784
819
827
Business & Professional
708
746
714
785
897
1018
1106
1209
1195
1270
1202
1088
1048
1082
1064
Directories
504
523
551
589
639
692
737
780
831
868
959
990
1029
1075
1131
Press Production Costs
417
427
438
472
514
550
577
620
650
702
669
643
634
660
653
TOTAL PRESS
4884
4957
5085
5552
5979
6413
6967
7531
7877
8609
8504
8314
8359
8741
8589
Television
2295
2472
2604
2888
3136
3379
3704
4029
4321
4646
4147
4349
4378
4653
4820
Direct Mail
895
945
907
1050
1135
1404
1635
1666
1876
2049
2228
2378
2467
2469
2371
Outdoor & Transport
267
284
300
350
411
466
545
613
649
810
788
816
914
986
1043
Radio
149
157
194
243
296
344
393
460
516
595
541
547
584
579
Cinema
42
45
49
53
69
73
88
97
123
128
164
180
180
192
Internet
-
-
-
-
-
-
8
19
51
153
166
197
408
653
TOTAL
8532
8859
9139
15412
16984
16537
16772
10136
11026
12080
13340
14415
1366
17348 18472
18956
Source: Advertising Association/WARC
(4.1.12)
Facts Newspapers remain the world's second largest advertising medium, after television, with more revenue than radio, cinema, outdoor, magazines and the internet combined. When newspapers and magazines are combined, print is the world's largest advertising medium, with a 42 per cent share, compared with 38 per cent for television. (Source: World association of newspapers July 2007)
UK advertising spend was £18.9 billion in 2005 (up from £18.4 billion in 2004) - an increase of 2.6 per cent, before accounting
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for inflation. The annual growth rate equates to a rise of 0.6 per cent in real terms. (Source: Advertising Association, June 2005)
Press continues to attract the highest proportion of overall advertising revenue, with television as the second largest medium. The fastest growing medium over recent years has been the internet. Expenditure in 2005 was up over 62 per cent year-on-year and its share of total advertising spend has risen to over 7.2 per cent. (Source: Advertising Association, June 2005).
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(4.1.13)
In The News Quality titles suffer as tabloids rise in June ABCs
Independent News & Media forecasts revenue growth
The Guardian and The Independent were the worst-affected daily newspapers in June, in a month in which the quality titles suffered while the tabloids celebrated, according to the national newspaper ABCs. The Sun enjoyed a circulation increase of 0.69 per cent from May to 3,064,376. Averaged out over six months, the News International title sells 3,073,046 daily copies, down 2.86 per cent year-on-year. The Daily Mirror experienced a slight rise in circulation in June, up 0.71 per cent from May to 1,565,711. But it suffered one of the worst year-on-year falls of all the national papers -its six-month average is 1,561,825, a year-on-year decline of 5.54 per cent .In the Sunday red-top market, the News of the World suffered a small fall in June, with circulation down by 0.0 cent to 3,269,483 copies. Its six-month average figure is down by 6.65 per cent year-on-year to 3,315,976 copies. The Sunday Mirror was up 2.46 per cent to 1,411,428 copies in June. Its six-month average figure fell by 4.33 per cent year-on-year to 1,400,384 copies.
Independent News & Media is forecasting a five per cent yearon-year growth in advertising revenues for the first half of 2007. In its latest trading statement, the group, which publishes and operates 130 radio stations and 180 newspapers and magazines globally, has announced it expects year-on-year group revenue to be up three per cent for the period. This includes a predicted two per cent increase in circulation revenues and a growth of 30 per cent in online advertising revenues, boosted by a strong performance for its sites, Propertynews.com, loadsajobs.co.uk and New Zealand site Search4.co.nz. The group also says a number of recent acquisitions, including Propertynews.com, as well as German online price comparison business, Verivox, Northern Irish newspaper distribution firm, WNS and online gaming brand, Cashcade, are performing in line with or exceeding expectations. By Joe Lepper Brand Republic July 2, 2007
Excerpts taken from article by Paul McNally, Brand Republic July 13, 2007.
Trinity predicts revenue fall Trinity Mirror has said it expects advertising revenues across the group to have fallen by 1.5 per cent in the first six months of 2007, but added that the advertising market showed signs of increased stability. Advertising revenues at its national titles are expected to decline 2.4 per cent over the period, compared with 4 per cent for the three months from January to April. Revenues at its regional division are expected to fall by 1.6 per cent. Shares rose 5.5p to 523.5p following the announcement. Campaign July 6, 2007
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Northern Irish daily title demographic comparisons he Sun dominates the Northern Ireland landscape in terms of readership as depicted in the graphs below. The Sun's
T
readership is only slightly superseded by the Belfast Telegraph in the Greater Belfast and city area.
(5.1.1)
Rest of Northern Ireland (R.O.N.I) Only
50
126
127
20
54
82
144
175
120
110
Greater Belfast and City Only
The Sun
Belfast Telegraph
Daily Mirror
Irish News
News Letter
The Sun
Belfast Telegraph
Daily Mirror
Irish News
News Letter
Source NI TGI 2006
It is evident from the graphs that The Sun dominates the Northern Irish landscape in terms of readership. It is only slightly superseded by the Belfast Telegraph in the Greater Belfast and city area.
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Socio-economic groups of daily titles It is said that C1, C2 and D categories are most likely to respond to direct sell advertising (people in A and B categories are far more likely to research various options before parting with their cash). Lower socio-economic groups are far more likely to be worried about 'keeping up with the Joneses' and, therefore, are far more likely to spend on credit and take out loans to buy goods and services. Again, less confidence in dealing with money and a higher demand for instant gratification means they are less likely to shop around or research the true cost of
financial products on offer. It is aspirational, and advertisers targeting these groups will often play on this fact. AB groups are more likely to be interested in savings and investments, this is why you'll find extensive money sections in the weekend broadsheets which are taken up with adverts for ISAs and Unit Trusts. They are far more likely to take foreign holidays regularly, especially short breaks. C2, D and E are likely to be aspirational in this area, and are more likely to watch holiday programmes. These groups are more likely to own caravans and go to UK holiday camps.
Source NI TGI 2006
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(5.1.2) <continued>
The charts on this page show the readers of the daily titles in their socio-economic groups. The pattern that the readers fall into can be measured against the population profile in Figs. 1 and 2. You can see immediately that the Belfast Telegraph bucks the trend in both regions
Source NI TGI 2006
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(5.1.3)
Readership of daily titles by age groups It has been widely advertised, that the Daily Mirror has the youngest age profile and the largest readership of group 1534yrs. However, with The Sun introduced into the mix, it is now evident that this is no longer the case. As the graph shows, The Sun readers in the younger age group stand tall against the other competitor titles. It is also reflected in Fig. 1 that Northern Ireland has a predominantly young population.
These statistics are evidence that The Sun is a very popular read among the young people of Northern Ireland and is a perfect platform on which to advertise in order to reach this developing age group.
Source NI TGI 2006
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(5.1.3) <continued>
Source NI TGI 2006
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Readership of daily titles by gender The Daily Mirror led the way, boasting the highest number of male readers of any publication. With The Sun opening its doors to local advertising, it now ranks high above the other national and indigenous titles. Its 155,000 male readers out shines the
Daily Mirror's 124,000. The Sun's sporting editorial attracts the majority of these readers. This opens up new platforms for advertisers looking to reach large male audiences. For The Sun, it opens up huge sponsorship opportunities
Source NI TGI 2006
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Readership of daily titles by religion This is a TGI statistic not often quoted across Britain and Ireland, but used in Northern Ireland, and may be used as a guide as to whether or not a client is likely to place an advert. The Belfast Telegraph has historically been labelled a 'middle of the road' publication when it comes to religious split. However, in Fig. 1, you can plainly see this is not the case, but,
if you look at the profile of the population (Fig.2), you can see that the Belfast Telegraph's religious profile (Fig.3), more or less, reflects the profile of the Northern Irish population. As does The Sun, however, with more readers in all religious categories, once again, The Sun offers more opportunities for the advertiser to reach a larger audience.
Religious Breakdown (N.I)
Fig. 1
Catholic Protestant
180
Neither
160
No Belief
140 120 100 80 60 40 20 0 The Sun
Belfast Telegraph
Daily Mirror
Fig. 2
Irish News
News Letter
Fig. 3
Source NI TGI 2006
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(5.1.5) <continued>
Source NI TGI 2006
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PAGE 25
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(5.1.5) <continued>
Source NI TGI 2006
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(6)
SWOT analysis of The Sun and NotW sales proposition in Northern Ireland his SWOT analysis presents the many advantages of developing regional advertising within Northern Ireland.
T
WEAKNESSES
STRENGTHS • No current local advertising, therefore, no dependency on advertising revenue streams • High reach • Proven, popular content - news, celebrity gossip, features, opinion and sport • Value for money • Established distribution channels • Growing circulation • Portable medium • Very strong brands • Market force - whilst regional titles are declining in circulation, national titles are showing marginal increases • Age profile, young and dynamic • Contract with Sales Inc. • Industry savvy • Knowledge of NI marketplace • Flexibility • Low cost • Service standards • Innovative team • Local employers gains respect
• No current relationship with advertisers • Not perceived as “quality” publications • Advertisers perceive them as national titles with no local content • No local classified section
THREATS
OPPORTUNITY • Grow local advertising • Opportunity to develop a more meaningful relationship with reader - (specifically trust - a recognised characteristic of regional and local newspapers) • Opportunity to define role within economy and society i.e. employing local people • Advertising sales force can have an unparalleled local relationship with businesses • Print format changes - more colour availability, supplements, features etc to drive advertising and newspaper purchasing/ frequency • use of internet to develop new revenue streams • Marketplace for national papers performing well • National advertising is still rising with more advertisements in colour • Value for money is a key component to winning contracts • Driving market share - other regional titles have a greater reliance on advertising, particularly the 'cash cow' recruitment category. • Opportunity to capitalise on peace dividend • Marketing opportunities / sponsorship with large local organisations
Presented to News International: Private & Confidential
• • • • • •
Highly competitive marketplace Meeting advertisers expectations demands heightening for better colour quality better positioning, early right-hand pages value for money agreements Newspaper reading habits dying in younger generation (see also strengths) • Growing competition for readers' attention • Classified migration to the internet • Public sector recruitment direct via net • Advertisers shifting budgets to below the line • Cost of newsprint • Advertising restrictions
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(7.1.3)
The Sun Competitive Comparisons
Children In Household
he following statements are an indication of the strength of the Sun in the Northern Irish marketplace against the leading Northern Ireland titles.
T
Source:TGI 2006
(7.1.1)
Cinema Goers • 22 per cent of all cinema-goers in Northern Ireland read The Sun compared to 16 per cent that are Daily Mirror readers and 19 per cent that are Belfast Telegraph readers. • 23 per cent of all cinema-goers in Greater Belfast and city read The Sun compared to only 16 per cent that are Daily Mirror readers and 12 per cent that are Irish News readers. • 21 per cent of all cinema-goers outside of Greater Belfast read The Sun compared with only 15 per cent that read the Belfast Telegraph and 16 per cent that read the Daily Mirror.
(7.1.2)
Home Owners/Buyers • 19 per cent of people in Northern Ireland who are buying or own their own home read The Sun compared with only 17 per cent who read the Daily Mirror and 14 per cent who read the Irish News. • 20 per cent of people in Greater Belfast & city who are buying or own their own home read The Sun compared with only 15 per cent who read the Daily Mirror and 11 per cent who read The Irish News • 18 per cent of people outside of Greater Belfast who are buying or own their own home read The Sun compared with 17 per cent who read The Belfast Telegraph and 16 per cent who read the Irish News
count
• 126,000 (44 per cent) of The Sun readers in Northern Ireland have children in the household compared to 77,000 Daily Mirror readers, 73,000 Belfast Telegraph, 62,000 Irish News and 21,000 News Letter readers. • 44,000 of The Sun readers in Greater Belfast and city have children in the household compared with only 30,000 Belfast Telegraph readers • 82,000 of The Sun readers outside of Greater Belfast have children in the household compared with only 42,000 Irish News, 43,000 Belfast Telegraph and 49,000 Daily Mirror readers
(7.1.4)
Car Owners • 23 per cent of all people in Northern Ireland who own a car read The Sun compared to only 19 per cent that are Belfast Telegraph readers,14 per cent that are Irish News readers and five per cent News Letter readers. • 24 per cent of people in Greater Belfast and city who own a car read The Sun compared with only 16 per cent that read the Daily Mirror • 70,000 readers of The Sun outside of Greater Belfast own a car compared with 48,000 Belfast Telegraph readers, 51,000 Irish News readers and 59,000 Daily Mirror readers • 91,000 of The Sun readers in Northern Ireland own two cars compared with 75,000 Daily Mirror and 64,000 Irish News readers • 20 per cent of two car owners outside of Greater Belfast read The Sun compared with 17 per cent that read the Belfast Telegraph, 16 per cent that read the Daily Mirror and 15 per cent that read the Irish News
(7.1.5)
Holidays • 19 per cent of people in Northern Ireland who take more than a week's holiday read The Sun compared with 17 per cent that read the Daily Mirror and 13 per cent that read the Irish News
Presented to News International: Private & Confidential
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(7.1.6)
(7.1.9)
Sport
Pub
• A significant 35 per cent of the Northern Irish population that belong to a football or rugby club, read The Sun compared with only 19 per cent who read the Daily Mirror, 16 per cent who read the Belfast Telegraph, 16 per cent who read the Irish News and only 11 per cent who read the News Letter. • 77,000 of The Sun readers in Northern Ireland choose to watch Sky Sports Live with only 60,000 Daily Mirror readers and only 40,000 Belfast Telegraph readers opting to do the same.
count
• 133,000 (47 per cent) of Sun readers in Northern Ireland really enjoy a night out at the pub. This compares with only 96,000 Daily Mirror, 90,000 Irish News, 79,000 Belfast Telegraph and only 18,000 News Letter readers • 26 per cent of people in the Greater Belfast and city area who enjoy a night at the pub read The Sun compared only to 18% who read the Daily Mirror, 19 per cent who read the Belfast Telegraph and 14 per cent who read the Irish News • 82,000 Sun readers outside of Greater Belfast enjoy a night at the pub - only 64,000 Irish News, 61,000 Daily Mirror, 42,000 Belfast Telegraph and 12,000 News Letter readers make a similar claim.
(7.1.7)
Insurance
(7.1.10)
• 180,000 of The Sun readers in Northern Ireland choose to have insurance of some kind compared to 152,000 Daily Mirror readers
Eating Out • Almost 50 per cent of The Sun readers in Northern Ireland enjoy splashing out on a good meal, that's 140,000 readers compared with138,000 Belfast Telegraph, 122,000 Daily Mirror, 101,000 Irish News and 43,000 News Letter subscribers.
(7.1.8)
Credit • 26 per cent of people in Northern Ireland who use credit read The Sun, 20 per cent read the Belfast Telegraph, 19 per cent read the Daily Mirror, 12 per cent read the Irish News and only five per cent read the News Letter
The Sun
Belfast Telegraph
(7.1.11)
Dual Readership
Daily Mirror
Irish News
News Letter
Read Other competitors
%
The Sun
285
51
57
17
16
141
49%
Belfast Telegraph
51
247
52
33
25
161
65%
Daily Mirror
57
52
226
49
10
168
74%
Irish News
17
33
49
180
8
107
59%
News letter
16
25
10
8
70
59
84%
The above table demonstrates that The Sun has the lowest percentage of readers in Northern Ireland who also read one of the other available titles. Source of all Information: NITGI 2006
Presented to News International: Private & Confidential
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Sales Strategy n the short term, the most important element of the sales strategy is a focus on informing and communicating with the advertising agencies and larger key accounts. These prospective advertisers are critical to the success of the proposition. There are a number of ways in which we will do this, as detailed below. It is envisaged that we will have a few quick wins, however, there will also be a large proportion of this
I
market that will want to evaluate and test. As such, we have built a proven value period into the pricing strategy. From a long term perspective, (year four onwards) when we have reached significant volumes from key advertisers, it is our view that further revenue growth will occur through the development of special features, and classified advertising along with new media propositions.
(8.1.1)
Sales and Marketing Plan EFFECTIVE FROM LAUNCH: Sales Support:
Presentations & personal selling:
The sales support member of the team will provide valuable administrative support to the company as well as acting as the front-of-house liaison for business enquiries, general reception duties, updating the website, preparing presentations, maintaining spreadsheets and so on. The sales support will also manage accounts and billing and debt issues.
We will be actively presenting to key decisionmakers on a daily basis. The partners anticipate making approximately 20 presentations such as this each week. Through these presentations, we aim to inform and communicate our offerings and secure written orders for advertising. In addition we need to establish sales agreements for at least three, six and 12-month periods. Agreements through advertising agencies could also be put in place on tiered discount structures for volume business.
Networking: This will take place at trade events, client visits, sponsored events and client entertaining. It will also occur at a personal level through the partners' membership of organisations such as Women in Business and the Sales Institute of Ireland. It is necessary in order to maintain links with the various market sectors and to better understand key issues that the sectors face. This includes being aware of competitor activity and advertising trends. We will also consider memberships of the Northern Ireland Chamber of Commerce and Industry, the Publicity Association of Northern Ireland, the Belfast Chamber of Trade and Commerce and other key networking organisations. Presented to News International: Private & Confidential
Press coverage: Distributing press releases as often as possible in order to maintain profile. For example: an event and a press release to mark the launch of a contract from News International and by profiling the partners themselves in local business publications. Website: Clearly, this will be reflective of the business. The website will support our endeavours to drive home our client's sales message, with relevant statistics and proven value facts and testimonials. The website will also contain an up-to-date client rate card. PAGE 30
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(8.1.1) <continued>
Advertising: (The Sun/News of the World) - utilising the products themselves to communicate to readers the changes to the product offering and its increased relevance to their decision to buy, read and enjoy.
Regional business press: This is read by advertising sales professionals, particularly advertising agencies and thus it is important that we maintain our businesses profile. Promotions and events: Relationships are key to success in the advertising industry. Personal selling will remain our most important means of promotion.
2008: Telesales activity: Handling generic advertising enquires and responsible for general territory management. Main duties include generating advertising revenue through the development of new customers by making outbound calls per day to key decisionmakers and presenting the Sun/NotW advertising solutions. Tasked with their own individual targets based not only on sales revenue but also on call rates. The telesales executive will be targeted on 40 outbound calls per day to a minimum of 20 decision-makers. They will also have sales call conversion targets and average value-of-order targets. The telesales executive will also have quality KPI's such as debt management, customer complaints, queries and so on. Mail shots: To be utilised to support the sales team's efforts and raise our clients. It is envisaged that, in the early days, we will mail and follow up by telephone/face-to-face approximately 200 potential advertisers per month. This is a manageable amount and ensures we will be able to follow up every lead.
Presented to News International: Private & Confidential
Strategic alliance: It is possible that the Sun/NotW competitors within the indigenous press in Northern Ireland, including the Ulster edition of the Daily Mirror, may see a distinct advantage in a strategic alliance, namely a joint package. Sales Inc. will not actively seek out these opportunities, however, should they occur, News International will be informed. We would advise meeting with the competitor to gauge views and give consideration to the proposed offering. Media partnerships, events and sponsorships With News International's support, we will be able to harness sponsorship deals and media partnerships to ensure both brands are well represented in the marketplace. Business Stationery: Joint branding on all stationery, on the website and so on.
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(8.1.2)
Pricing Despite the strength of The Sun and News of the World's circulation within Northern Ireland, these titles have to prove their worth to the advertising community. Extensive competition within the marketplace means that an aggressive pricing strategy is required. Based on relevant previous experience, we know that the advertising agencies command the lion's share of the budgets that we seek and these agencies will not make suitable recommendations to their clients regarding new platforms as opposed to tried-and-tested media unless significant savings can be guaranteed over a sustained period. This is necessary to enable them to gauge response levels and prove value.
Rate Cards and discount structure We suggest a run-of-paper rate card value of £10.00 sq cm. This is the rate we need to communicate at all times. We also suggest a 26-week proven value period where we openly offer a tiered discount structure with a maximum discount of £5.00 sccm, however, previous experience has shown that even with a defined period to prove value, rate increases should be phased in over a more prolonged period. Colour has not been factored into the figures due to a lack of information about colour availability and other pagination issues.
Rate Comparison Rates
The Sun
BT
DM
IN
Mono
10.00
19.30
8.75
10.85
Colour
14.00
27.02
12.50
13.60
Readership (000s)
286
247
226
180
Colour
0.05
0.11
0.06
Mono
0.03
0.08
0.04
Circulations
74,125
90,285
59836
NL
NOTW
SL
SM/TP
SW
9.30
10.00
13.50
8.75
10.90
13.02
14.00
16.85
12.50
16.60
70
277
234
157
189
0.08
0.00
0.00
0.07
0.08
0.09
0.06
0.00
0.00
0.06
0.06
0.06
48,711
24,468
84,757
77,506
58,064
69,660
s.c.cm (£)
Cost per '000
SM 39,003 TP 19,061
Presented to News International: Private & Confidential
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(8.1.3)
Revenue Estimates Based on an estimate of competitor activity, we have calculated the revenue performance factoring in monthly variances for year
one through to year three for both The Sun and the News of the world.
(8.1.4)
Presented to News International: Private & Confidential
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(8.1.5)
The Sun and News of the World combined gross performance (8.1.6)
The Sun & News of the World combined net performance (8.1.7)
Trading terms In terms of customer trading, we envisage two forms of accounts: transient and monthly. All first time advertisers will be required to pay 100/50 per cent pro forma and supply us with a credit reference from their bank to permit them to open an account. Transient account terms will be based on payment by return within five working days. Recognised advertising agencies will set up a monthly account which will give them 30 days credit terms. Credit control will require tight management and we envisage we will be responsible for debt recovery, however, we may Presented to News International: Private & Confidential
require additional support with debtors of 60 days and more. Perhaps News International might consider appointing a debt recovery agency (9.1.8)
Advertising agencies Commission agreements contracts could be negotiated subject to spend within pre-determined trading parameters. PAGE 34
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Financial Plan - Profit and Loss 9.1.1
P&L first four months, Years 1,2 & 3 based on ÂŁ5 rate card
9.1.2
P&L first four months, Years 1,2 & 3 based on ÂŁ6 rate card
Presented to News International: Private & Confidential
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(9.1.1)
Profit & Loss Accounts First 4 months of trading, years 1, 2 and 3 Based on ÂŁ5.00 sc cm
Presented to News International: Private & Confidential
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(9.1.2)
Profit & Loss Accounts First 4 months of trading, years 1, 2 and 3 Based on ÂŁ6.00 sc cm
Presented to News International: Private & Confidential
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Financial Plan - Cash Flow 10.1.1 Cash Flow first four months Years 1,2 & 3 based on ÂŁ5 rate card 10.1.2 Cash Flow first four months Years 1,2 & 3 based on ÂŁ6 rate card
Presented to News International: Private & Confidential
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(10.1.1)
Cash Flow Accounts First 4 months of trading, years 1, 2 and 3 Based on ÂŁ5.00 sc cm
Presented to News International: Private & Confidential
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(10.1.2)
Cash Flow Accounts First 4 months of trading, years 1, 2 and 3 Based on ÂŁ6.00 sc cm
Presented to News International: Private & Confidential
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What Sales Inc needs from News International • Marketing - budget for above and below the line activity to drive awareness of regional advertising and editorial content. You may also want to create increased sport content from local perspective to really drive the message home. • Unlimited creative support - design and make-up of finished art and proofing of advertisements. • Six-months arrears commission plan to facilitate Sales Inc. cash flow for the purpose of account and debt recovery. • Legally binding contract agreement
Presented to News International: Private & Confidential
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Other Appendices • Assumptions • Partners CVs • Business cards and company letterhead.
Presented to News International: Private & Confidential
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