The big issue magazine final report

  1  

THE  BIG  ISSUE  MAGAZINE  BRAND  AUDIT  REPORT  2013  

By  Tabatha  Schmidhauser                  

  2  

TABLE  OF  CONTENTS  

THE  BIG  ISSUE:  PRESENTATION     5  • Background   5      • The  Product   6  

   • Online  Presence   7  

Facebook  Community   7  Twitter  engagement   7  The  Big  Issue  Website   7  

   • Distribution  and  Delivery   8  

Distribution  System   8  The  Big  Issue  to  Vendors  Relation            Vendors  to  Consumers                Subscriptions                  

Delivery  places   8  The  Vendors  to  Customers  The  Big  Issue  to  Vendors  

Vendors   8  Conditions  Meet  Traian    

BRAND  PERSONALITY     9  • Brand  Name   9  

The  name   9  The  Slogan   9  The  Logo   9  Advertising  Strategies    

   • Brand  Positioning   10  

   • Brand  Image   10  

 • Brand  adding  values   11  

 • Brand  Philosophy   11  

  3  

BRAND  IDENTITY     11      • Mission   11  

Mission  statement   11  Delivery  Mission   11  

   • Objectives   11  

   • Wanted  position     12  

   • Brand  values     12  

 Social  /  People   12  Quality   12  Professionalism   12      

• Consumer  Target  Analysis     13  Demographic  segmentation   13  Psychographic  segmentation   14  

ENVIRONMENTAL  ANALYSIS     15  • Internal  Micro  Analysis     15  

SWOT  Analysis   15  Adaptation  Strategy    

• Internal  Macro  Analysis     16  Porter’s  Five  Forces   16  MCKINSEY  ANALYSIS   17      

• External  Analysis   18  PESTLE  Analysis   18      

• Consumer  Analysis   19  Readership   19  

Testimonials  Survey  

Perception  maps   21  Quality  /  Price  Accessibility  /  Informative  

Customers  brand  Affinity   22  Customer  End-­‐Benefits   22  

COMPETITIVE  BRAND  ANALYSIS   23  • Market  Analysis   23  

Print   23  

  4  

Alternatives   24      

• Competitors  Table   26      

• Comparative  Strengths   27  

RECOMMENDATIONS   27  • BUSINESS  TO  BUSINESS   27  

Increase  advertising  space  sales   27  Tactics   27  

 • BUSINESS  TO  CUSTOMERS   28  

Increase  magazine  sales   28  Tactics   28  

   • PROMOTIONAL  MIX   28  

Advertising   29  Public  relations   29  

 • DIVERSIFICATION   39  

Product  development   39  Market  development  

SOURCES     30        

  5  

THE  BIG  ISSUE  PRESENTATION  “Helping  people  help  themselves”  

Summary

The Big Issue is a street newspaper published in eight countries; it is written by professional journalists and sold by homeless individuals. It was founded by John Bird and Gordon Roddick in September 1991. The Big Issue is one of the UK’s leading social businesses and exists to offer homeless people the opportunity to earn a legitimate income, thereby helping them to reintegrate into mainstream society. It is also the world’s most widely circulated street newspaper. To become a vendor, one must be homeless or vulnerably housed or marginalized in some way. The Big Issue recognizes, however, that for many people, being housed is only the first stage in getting off the streets; therefore, The Big Issue Foundation exists to support vendors in gaining control of their lives by tackling the various issues, which lead to homelessness. The Big Issue has been described as one of the most successful street newspapers worldwide, selling over 300,000 copies a week and listed as the third-favorite newspaper of young British people (age 15 to 24) in 2001.There are 5 localized editions of the magazine sold throughout the United Kingdom and vendors buy The Big Issue for 85p and sell it for.  

 BACKGROUND  

 Company:  The  Big  Issue  Company  Founders:  John  Bird  and  Gordon  Roddick  Type:  Fortnightly  independent  magazine,  non  for  profit  social  enterprise  Industry:  Entertainment  Founded  in  September  1991  Headquarters:  London,  UK  Area  served:  UK,  Australia,  Japan,  South  Korea,  Namibia,  Kenya,  Taiwan,  Malawi  Editor  in  Chief:  John  Bird  Publisher:  John  Hunt    Frequency:  Weekly  Category:  Street  Newspaper  Circulation:  125,000  (2001)  Price:  £2.50  Number  of  employees  (2011):  worked  with  over  10,000  vendors  since  1995.  Competitors:  The  guardian,  telegraphs,  evening  standards,  Independent,  Making  Change  (California),  street  news,  real  change,  The  Economist  Target  Group:    “a  culturally  engaged,  socially  aware  audience  –  the  ultimate  consumers  with  a  conscience”.  Source  of  Income:  Sales  Magazine  and  Advertising:  Re-­‐invested  in  the  company  or  donated  to  The  Big  Issue  Foundation.  Additional  information:  An  award-­‐  winning  entertainment  and  current  affairs  magazine,  the  magazine  covers  arts,  entertainment,  current  affairs,  lifestyle,  news  and  opinion.      

  6  

THE  PRODUCT  

•  A4  stapled  48pp        •  £2.50  cover  price     •  Visible  Brand  title    

•  Every  week  in  every  major  town  and  city     •  Sold  only  in  the  street  

•  High  visibility   •  Offer  book,  film,  TV  reviews,  entertainments,           financial,  testimonies  and  personal  life  stories.  

  7  

ONLINE  PRESENCE    

FACEBOOK  COMMUNITY:    

Likes:  8,047  (Low  presence)  Content:  Company  presentation,  basic  information  no  magazine  content  related  

 TWITTER  ENGAGEMENT:  

 Tweets:  5,484  (Mostly  promoting  and  advertising  the  brand  and  magazine  features)  Following:  239  Followers:  12,573  (Increasing  number  of  followers)  

 THE  BIG  ISSUE  WEBSITE:  

 Parented  by  The  Big  Issue  Foundation  website:  Charitable  association  Company  Information:  Vendors,  mission,  subscription…  Magazine:  Reviews,  Articles,  events  

  8  

DISTRIBUTION  AND  DELIVERY  

DISTRIBUTION  SYSTEM:  

The  Big  Issue  to  Vendors  Relation:  New  Vendors:  They  get  the  first  10  magazines  for  free.  After  having  sold  these  they  have  to  buy  the  magazine  from  the  company  at  a  price  of  £1.25  Training  support  to  all  new  vendors    

 Vendors  to  Consumers:  

Based  on  a  street  selling  approach:  Vendors  sell  the  magazine  to  people  in  the  street,  no  defined  customers,  more  people  the  better.  Customers  buy  the  magazine  for  £2.50  and  the  vendors  have  a  margin  of  £1.25.      

Subscriptions:  Customers  have  the  possibility  to  subscribe  to  the  magazine  if  they  wish.  For  £155,  the  client  will  receive  a  new  edition  of  the  Magazine  every  fortnight  for  12  months.  Monthly  subscription  is  also  an  option  at  $12.40.  Furthermore  according  to  their  statement,  the  money  collected  will  also  help  to  employ  homeless,  marginalized  and  disadvantaged  women.    

DELIVERY  PLACES:  

The  Big  Issue  to  Vendors:  There  are  63  distribution  points  nationwide  and  pitches  available  across  the  UK.  Process:  Contact  the  nearest  office  in  person  or  by  telephone  and  staff  will  be  able  to  advise  you  on  how  to  get  started.  

The  Vendors  to  Customers  The  Big  Issue  magazine  can  be  bought  pretty  much  everywhere  Best  known  spots:  Tube  stations,  main  streets,  crowded  places,  entrance  of  grocery  shops…  

THE  VENDORS    Big  Issue  vendors  are  mostly  men  (varying  80  -­‐90%).  A  recent  survey  of  vendors  indicates  that  the  most  common  immediate  precipitating  cause  of  homelessness  is  relationship  breakdown.  The  vendors  range  between  the  age  of  18  –  46  plus,  with  the  main  group  falling  into  the  26  –  35  age  bracket.  Across  the  UK  there  are  about  6000  registered  vendors  and  a  further  1000  in  Ireland.  There  are  approximately  250,000  issues  sold  across  the  British  Isles  each  week.    

Conditions  to  become  a  vendor    

If  you  are:  • Homeless  or  rough  sleeping  • In  temporary  accommodation  • In  danger  of  losing  a  home  

  9  

• Unemployed  and  facing  financial  crisis    

 Meet  Traian  

 Name:  Traian  Age:  26  Nationality:  Romanian  

 Traian  is  homeless  and  started  selling  The  Big  Issue  Magazine  quite  recently.    I  met  him  a  Saturday  at  13pm  next  to  the  entrance  of  Sainsbury  in  Camden  town.  He  comes  often  and  normally  all  day  long  from  10am  to  5pm  depending  on  the  sales.  On  busy  and  beautiful  day,  Traian  manages  to  sell  about  10  magazines  per  day,  however  it  happened  that  she  could  not  sell  any  in  a  day  (on  average  its  6-­‐7  per  day  and  more  at  the  beginning  of  the  week).  He  ended  up  in  the  street  because  of  drug  abuse.  He  lost  his  previous  job  as  a  cashier  in  a  small  boutique,  could  not  find  another  one  and  ended  up  in  the  street  at  the  cost  of  living  was  too  high  to  support  a  shelter,  electricity,  food…  He  told  me  that  The  Big  Issue  Magazine  is  his  only  hope  to  reconstruct  a  life.  He  finally  feels  that  he  matters  and  he  is  now  able  to  buy  food  and  clothes.      

BRAND  PERSONALITY    

BRAND  NAME    

THE  BIG  ISSUE:  The  name  chosen  is  correlating  with  the  brand  values  and  personality.  Focus  on  the  social  crisis  and  is  highly  engaging.  Direct  and  to  the  point,  while  leaving  space  for  interpretation.  Adding  “magazine”,  the  brand  name  would  give  clear  expectations  to  the  customers.      SLOGAN:  “Helping  people  help  themselves”  Encouraging  and  differentiated  from  other  social  /  charity  organizations  Add  value  and  significance,  feeling  of  contribution  and  progress.  

 LOGO:  

  10  

 Simple  and  direct  to  the  point,  while  being  “aggressive”  and  highly  recognizable.  Easily  noticed  and  wants  to  be  provocative.  

 Advertising  Strategy:    

• M&C  Saatchi  with  The  Big  Issue  Vendors  • Street  advertisement  through  vendors  • Press  releases  

 BRAND  POSITIONING  

The  Big  Issue  position  themselves  as  being  the  channel  of  social  help.  They  want  to  be  seen  as  a  charitable  company,  which  provide  customers  with  valuable  information  and  content  through  their  magazine,  while  helping  the  society  through  a  self-­‐help  system.  The  want  to  be  the  best-­‐known  company,  which  manages  to  mix  business  with  ethical  techniques  and  actions.  Furthermore  their  aim  is  to  be  re-­‐cognized  and  directly  associated  with  the  “one  of  the  solution”  to  homelessness.    

BRAND  IMAGE    

From  Paul  McNamee,  Big  Issue  Editor  

“Irreverent,  challenging,    chest-­‐out,  campaigning,    frequently  uplifting  and  fearless.    We  will  ask  tough  questions  of  authority  and  challenge  the  status  quo.  We  are  in  the  community,  of  the  community,  up  from  the  streets,  and  unlike  anybody  else.  We  are  The  Big  Issue.’”  

-­‐ The  Big  Issue  wants  to  be  seen  as  a  non-­‐for  profit  organization  very  concerned  about  social  issues  and  specifically  homelessness.  

-­‐ Secondly  they  want  to  be  seen  as  a  professional,  interesting  and  impressive  information  provider.    

BRAND  ADDING  VALUE  

WHAT  MAKES  THE  BIG  ISSUE  SPECIAL?  

Lot  of  people  assumes  that  The  Big  Issue  is  written  and  produced  by  homeless  people.  However,  their  first  priority  is  to  ensure  selling  a  qualitative  product.  Therefore,  all  the  editorial  staffs  are  trained,  professional  journalists.  The  magazine  includes  two  pages  called  Streetlights,  which  are  dedicated  exclusively  to  poems  and  articles  by  homeless  people.    

The  Big  Issue  differentiates  itself  by  offering  a  voice  in  the  media  to  homeless  people.  

  11  

BRAND  PHILOSOPHY  

The  Big  Issue  ‘s  philosophy  is  based  on  a  system  of  self-­‐help.  That  is  to  say,  they  offer  a  sustainable  approach,  which  is  not  directly  based  on  charity  or  handouts,  but  rather  is  the  result  of  vendors  work  with  the  tools  of  The  Big  Issue.    

The  benefice  of  this  job  from  vendors’  point  of  view  is  to  be  able  to  start  over,  to  be  given  a  chance.  However  according  to  a  recent  survey,  the  biggest  benefit  from  selling  those  magazine  was  to  be  constantly  in  contact  with  the  public  and  be  able  to  re-­‐gain  confidence  and  build  a  life  around  social  interaction.    

BRAND  IDENTITY    

MISSION  

MISSION  STATEMENT  

“Our  mission  is  to  connect  vendors  with  the  vital  support  and  solutions  that  enable  them  to  rebuild  their  lives;  to  find  their  own  path  in  their  personal  journey  away  from  homelessness.”    DELIVERY  MISSION  

‘Vendor-­‐centric’  –  our  work  is  led  by  the  hopes  and  aspirations  of  Big  Issue  vendors  

‘Inclusive’  –  social  and  financial  inclusion  is  at  the  heart  of  our  philosophy  

‘Non-­‐judgmental’  –  we  work  with  anyone  who  is  prepared  to  engage  with  self-­‐help.    

OBJECTIVES  

The  objective  of  The  Big  Issue  Foundation  is  to  connect  vendors  with  the  social  environment.  They  will  offer  a  vital  support  and  solutions  that  enable  them  to  rebuild  their  lives  and  journey  away  from  homelessness.    The  company  works  exclusively  with  Big  Issue  vendors.  The  vendors  are  homeless  individuals,  vulnerably  housed  or  at  risk  of  homelessness  because  of  significant  issues  such  as  unemployment  or  a  financial  crisis.  The  company’s  objective,  by  the  mean  of  “magazine  trading”,  is  to  help  these  people  and  change  consumers’  about  social  issues.  The  Big  Issue  Company  also  aims  to  promote  itself  as  a  model  of  how  a  social  business,  as  opposed  to  a  charity,  can  be  a  solution  to  homelessness  and  social  exclusion.  

WANTED  POSITION  The  Big  Issue  Magazine  as  being  part  of  The  Big  Issue  Foundation  wants  to  ensure  that  in  the  next  three  years,  every  vendor  has:  

    -­‐  Somewhere  meaningful  to  call  home       -­‐  Access  to  a  doctor  and  equality  of  access  to  health  care  opportunities  

  12  

    -­‐  The  essential  support  that  is  needed  to  overcome  addictions       -­‐  Direct  help  with  their  sales  skills  to  maximize  their  independent  earnings       -­‐  The  crucial  personal  identification  that  opens  so  many  doors       -­‐  Access  to  additional  financial  support  and  secure  saving  opportunities       -­‐  The  opportunity  to  re-­‐connect  with  family  members  and  loved  ones.    

 VALUES  

   SOCIAL  /  PEOPLE:    As   we   can   see   from   their   methods   and   mission,   they   are   very   much   directed   toward  people.  They  are  positioned  as  a  non-­‐for  profit  organization  that  wishes  to  help  resolves  social   issues   like   homelessness.   Their   sustainable   distribution   system   offers   the  opportunity  for  homeless  to  start  over  (self-­‐help)  and  proves  that  the  brand  cares  more  about  individuals  that  anything  else.      QUALITY:    Nevertheless,  the  company  is  selling  magazine  and  they  ensure  their  product  is  of  quality.  Their  goal  is  not  to  fool  customers  with  only  the  social  benefit  of  buying  the  magazine  but  also  to  get  good  and  qualitative  information.    PROFESSIONALISM:    In   order   to   provide   customers   with   qualitative   content,   the   place   themselves   as  professionals.  They  are  stating  their  article  have  been  written  by  professionals,  therefore  of  good  quality,  their  staff  is  professional  as  well  as  the  vendors.      =  As  a  result,   their  values  are  SOCIAL   reflected  through  social  help,  QUALITY,   reflected  through  their  magazines  and  PROFESIONALISM  reflected  through  their  content,  articles  and  reviews.    

CONSUMER  TARGET  ANALYSIS  

Better  understand  and  identify  our  consumer’s  need  In  order  to  create:  • Strong  brand  name  • Greater  market  share  • Cross  selling  solutions  

 The  Big  Issue  describes  their  audience  as  being  “a  culturally  engaged,  socially  aware  audience  -­‐  the  ultimate  consumers  with  a  conscience”.  Unlike  many  other  magazines  they  assume  their  audience  are  socially  aware  and  are  interested  in  how  ethical  things  are.  The  information  on  their  website  about  their  readership  says  that  84%  of  their  audience  

  13  

believe  its  important  for  a  company  to  act  ethically.  As  opposed  to  usual  celebrity  gossip  magazines,  the  audience  for  The  Big  Issue  is  generally  already  settled  in  their  careers  whereas  gossip  readers  are  aspirers  just  starting  out.  The  Big  Issue  argued  that  their  audience  are  consumers  with  a  conscience.      

DEMOGRAPHIC  SEGMENTATION  ANALYSIS  

Circulation:  124,  196  per  week:  (ABC  Jan-­‐Dec  2010  for  The  Big  Issue  Group)  

 Readership:  585,000  per  week:  (NRS  Q3  2010)  

Advertise  in  the  Big  Issue  Magazine  and  reach  a  culturally  engaged,  socially  aware  audience  -­‐  The  ultimate  consumers  with  a  conscience      Female:  56%       Male:  44%    ABC1:  75%    Working  full  time:  41%       Still  studying:  31%    Age  Group       Profile:  Under  24:  20.5%       Urbanites  leading  busy  life  25  to  44:  38.4%       Prepared  to  pay  extra  for  quality  45  to  64:  29.3%       Culturally,  ethically  and  socially  aware  Over  65:  11.9%       Courageous,  conscientious  consumers      Big  Issue  readers  agree  that:    It’s  important  that  a  company  acts  ethically  –  84%    It’s  worth  paying  extra  for  quality  goods  –  82%          

PSYCHOGRAPHIC  SEGMENTATION  ANALYSIS    

MUSIC  CONCERNED:  

• Readers  spend  £3.8M  on  albums/singles  per  year  • 71%  of  readers  say  music  is  an  important  part  of  their  life  –  475,000  readers.  • Total  volume  of  nightclub  visits  per  month  is  377,000  –  over  three  times  more  than  

Time  Out.  

 ARTS  AND  CULTURE  

• Readers  visit  the  theatre  a  total  of  1.4M  times  per  year  

  14  

• Readers  make  a  total  of  886,000  visits  to  art  galleries  per  year  • Total  spend  on  paperbacks  £3.3M  per  year  

BANKING    

• 68%  of  readers  are  more  aware  of  personal  finance  than  they  used  to  be    453,000  readers.  

• 52%  of  readers  say  it  is  important  for  everything  to  be  insured  –  343,000  readers.    THE  ENVIRONMENT  

• 87%  say  people  should  recycle.  • 64%  say  you  should  pay  more  for  environmentally  friendly  products.  

CHARITABLE  GIVING    

• Total  spend  per  year  £40.8M  • Readers  spend  £78  each  on  charity  per  year  

 LIFESTYLE    

• 44%  of  readers  always  check  the  nutritional  content  of  food  -­‐  295,000  readers  • 174,000  readers  ALWAYS  look  for  the  Light/Diet  version  of  food  &  drink  

 DRINKS    

• 252,000  of  readers  say  it’s  worth  paying  extra  for  good  quality  beer  • 337,000  of  readers  are  prepared  to  pay  more  for  good  quality  wine  • Total  volume  of  wine  bought  for  home  consumption  –  1.2M  • Readers  drink  3.1M  fizzy  soft  drinks  in  total  per  year  • Total  volume  of  yoghurt  drinks  per  month  2.4M  

 FILMS  

• Buy  an  average  of  5  DVD’s  per  year  each,  more  than  the  Guardian,  The  • Independent  and  Time  Out  • Readers  buy  2.1M  DVD’s  in  total  per  year  • Readers  make  over  half  a  million  cinema  visits  a  month.  

 The  Big  Issue  readership  has  a  denser  population  of  Main  Shoppers  than  readers  of  the  Independent  on  Sunday,  Independent  on  Saturday,  Independent,  Guardian,  Times  and  Telegraph.      

Source:  GB  TGI  Q2  2008        

  15  

ENVIRONMENTAL  ANALYSIS    

INTERNAL  MICRO  ANALYSIS  SWOT  ANALYSIS  

 STRENGTH   WEAKNESSES  

Cheap  and  important  Labor  force   No  control  over  workers  (unpredictable)  Unique  method  of  delivery   Vendors  nationality,  lack  of  trust  “Charity  purpose”   Mostly  immigrants  vendors  (Stereotypes)  Social  change  status  UK   Price  and  youth  targeted  (Cheaper  options)  Present  on  4  continents   Low  brand  loyalty  Awards  and  trust   Low  brand  awareness  Unique  selling  Proposition   Weak  presence  

OPPORTUNITIES   THREAT  Increase  in  homelessness  +  vendors  +  sales   Decrease  in  the  disposable  income  Increasing  number  of  social  enterprises   Free  magazine  Studies  on  social  entrepreneurship  (up)   Online  news  service,  technology  Increasing  number  of  events,  competitions…   Relate  on  donations     Legislation  on  immigrants  (Romanian)     Government  and  taxes     Work  permit     Natural  Disasters,  professional…  (Bangladesh)  

Industry  Challenges:  Adaptation  Strategy        

TURN  THREATS  INTO  OPPORTUNITIES  USE  STRENGTH  TO  DECREASE  WEAKNESSES  

Unprofessional  Vendors  No  experience  =  Can  have  a  bad  effect  on  

the  brand  image  

Offer  training  session  to  make  sure  every  vendor  understand  their  role  and  how  they  are  contributing  the  brand  identity  

Increasing  number  of  competitions,  events  and  charity  races...  

Give  speeches;  do  some  PR,  apparitions  to  build  The  Big  Issue  Name  and  reputation.      

Increasing  number  of  social  enterprises  Increase  in  social  issue  awareness  

Work  in  Partnership  with  other  associations  to  raise  a  bigger  budget  and  be  able  to  improve  the  magazine,  expend  in  other  markets  and  make  the  brand  

known  

  16  

Disasters  like  the  one  in  Bangladesh  =  Press  Release  =  People  care  more  and  

become  more  conscious  

Take  advantage  of  such  issue  to  promote  the  brand  and  show  the  big  issue  unique  

selling  point  and  values  Economic  Crisis  =  More  people  in  trouble  

ending  in  the  Street  =  Increasing  the  number  of  workforce  

INTERNAL  MACRO  ANALYSIS  PORTERS  5  FORCES  MODEL  

   Supplier  Power  –  Medium  –  Low  

The   Big   Issue   is   a   pretty   big   company,   printing   more   than   120,000   copies   per   week.  Comparing  this  level  of  circulation  with  competitors  we  see  that  it  is  pretty  low,  however  supplier   would   not   want   to   loose   a   company   such   as   The   Big   Issue.   Moreover   as   the  company  is  working  for  a  special  cause,  it  gives  another  argument  for  suppliers  to  stay.    

Buyer  power  –  High  

The   customer   has   a   relatively   high   buying   power   as   the   competition   is   tough   and  technology   provide   them  with   a   wide   range   of   similar   product,   which   in   some   case   is  more  interesting  and  on  target  and  cheaper.  

Competitive  Rivalry  –  High  

Direct:   Even   though   there   are   not   so   many   magazines   with   the   same   values   and  distribution  system  as  The  Big  Issue,  there  are  a  lot  that  provide  similar  products.  They  all  operate   in   the   communication   and   flow   of   information   area.   Some  magazines   are   free,  while   others   are   not,   some   concentrate   on   finance   and   other   provide   a   wide   range   of  information.    

Indirect:   TV   and   Internet.   Today   we   can   get   any   kind   of   news   through   digital   media  channels.    

Threat  of  Substitution  –  High  

The   threat  of   substitution   is   very  high  and   the  dependence  of   consumers  of   technology  makes  it  even  higher.  Mobile  devices,  tables,  internet  are  all  delivering  a  similar  promise  to   their   customers.   Furthermore   as   people   are   beginning   to   become   more  environmentally   friendly,   the   consumption   of   paper   based   magazine   or   newspaper   is  decreasing.  As  a  result  customers  are  more  and  more  turning  towards  the  Internet  or  tv  channels  to  get  their  news.    

  17  

Threat  of  New  Entries  –  Medium  

The  level  of  capital  to  enter  this  market  is  relatively  low  and  the  level  of  expertise  needed  is   not   very   high   neither.   Potential   new   companies   could   be   interested   in   entering   the  market,  however  with  the  rise  in  technology  the  future  profit  is  limited.    

MCKINSEY  7S  MODEL  

 1) Strategy-­‐    

  Their   main   competitive   advantage   is   the   social   aspect   of   the   magazine.   They     differentiate   themselves   by   positioning   themselves   as   “a   socially   engaged”     company.    

 2)  Structure-­‐       The  big  issue  Company     The  Big  Issue  Foundation     The  Big  Issue  Magazine    2) Systems-­‐       The  magazine   is  produced  weekly,   so  writers,   journalists  are  constantly  working     on  the  next  issue.  The  vendors  are  up  to  do  what  they  want,  however  they  would     tend   to  go   in   the  street  and   try   to  sell  as  much  magazine  as   they  can   to   increase     their   revenue   and  be   able   to   buy   the   next   issue   as  well   (Circle   system  based   on     self-­‐help).    

3) Shared  Values-­‐    

The  company’s  value  is  social  /  people,  professionalism  and  quality.  Every  member  of  the  company  is  actively  engaged  to  defend  those  values,     indeed   writers   and   journalists  provides  the  best  content  to  reflect  professionalism  and  the  vendors  would  do  the  same  to  defend  “themselves”  and  touch  people  on  social  issue  and  homelessness.    

4) Style-­‐  

The   company’s   leadership   style   is   straightforward   as   they   brief   their   vendors   at   the  beginning  and  would  give  support  if  needed.  They  have  a  unique  style,  which  manage  to  combine  charitable  help  and  business.    

6)  Staff-­‐    

-­‐  Self  employed  staff  (vendors)  =  mean  of  distribution  

-­‐  Professional  writers  and  editors,  trained  and  skilled  in  journalism  

7)  Skills  –    

-­‐ No  skills  from  vendors    

-­‐ Professional  skills  from  writers  and  internal  staff  members  

  18  

EXTERNAL  ANALYSIS  PESTLE  ANALYSIS  

 Political:    

-­‐ Stricter  taxes  policy  from  the  government  -­‐ International,  national,  regional  and  local  policies  

 Economic:  

-­‐ Rise  in  Unemployment  -­‐ Decrease  in  disposable  Income  (Recession  period)    

Socio  –  cultural:    -­‐ People  are  becoming  financially  careful  -­‐ Higher  level  of  education  in  the  population  -­‐ The  society  is  becoming  more  aware  about  social  concerns  -­‐ Change  in  people’s  lifestyle,  addiction  and  needs  

 Technological:  

-­‐ Rise  in  technology  and  innovation  -­‐ Speed  of  delivery  

 Environmental:  

-­‐ Recycling  paper  -­‐ Street  cleaning  -­‐ Weather  conditions,  rain,  temperatures  

         Legal:      

-­‐ Street  selling  regulation  -­‐ Consumers  rights  -­‐ Employment  laws  -­‐ Immigration  issues  

CONSUMER  ANALYSIS  

READERSHIP  

Testimonials  

David  West:  Talked  to  him  in  the  park  at  Russell  Square  Age:  32  Job:  Bar  tender  at  “The  Light  Bar”  =  David  is  no  longer  buying  the  big  issue  because  he  does  not  believe  the  majority  of  vendors  are  homeless.  “A  lot  of  them  are  foreigners,  they  smoke,  they  drink  and  sometimes  are  very  rude  when  you  do  not  buy  the  magazine.  I  am  a  generous  person,  however  I  would  rather  give  money  homeless  charities  and  organizations,  which  I  know  would  provide  homeless  with  food  and  shelter”.      

  19  

   Amanda  Waterhouse:  Talked  to  her  in  the  tube,  central  line.  Age:  26  Job:  MPs  at  Red  Carnation  Hotels  =  Amanda  is  buying  sometimes  The  Big  Issue,  when  she  sees  her  usual  vendor  at  South  Kensington,  where  she  get  off  to  go  to  work.  However  she  confessed  that  the  first  reason  why  she  was  buying  the  newspaper  was  because  she  felt  bad  for  the  vendor  and  felt  that  she  had  to  help.  She  is  not  really  interesting  in  the  content  of  the  magazine  and  she  is  more  a  digital  news  taker,  watching  TV,  or  surfing  on  The  Independent  or  The  Guardian  website.    

Survey  

Survey  based  on  a  Total  100  People:  46  Female  /  54  Male  Randomly  chosen  

DO PEOPLE KNOW ABOUT THE BIG ISSUE  

Know  about  the  Big  Issue  Magazine   Yes     No   Total  

Female   90%   9%   46  Male   87%   13%   54  Total   88%   12%   100  

0  5  10  15  20  25  30  35  40  45  50  

15-­‐25   25-­‐35   35-­‐45   45-­‐60   60+  

Frequency  Purchase  per  age  group  

All  the  time  

Often  

Sometimes  

Never  

  20  

11.69%  

42.86%  16.88%  

28.57%  

Reason  to  buy  the  Big  Issue  on  77  buyers  

"Forced"by  vendors  

Charity  

Entertainement  

Charity  +  Entertainement  

17.39%  

52.17%  

21.74%  

8.70%  

Reason  not  to  buy  The  Big  Issue  on  23  non-­‐buyers  

Do  not  believe  "true  homelessness"  

Limited  Budget  /  Free  alternative  

Buy  other  magazines  

Not  Interested  in  the  content  

  21  

PERCEPTION  MAPS  

Quality  /  Price  

 Accessibility  /  Informative  

  22  

CUSTOMERS  BRAND  AFFINITY    

Information  based  on  reviews,  newspapers  articles  and  blog  posts    

Social  values:  The  social  benefit  brought  by  the  purchase  of  one  magazine.  A  sense  of  charity  given  away  for  the  welfare  of  the  vendor.    Self-­‐satisfaction:  A  lot  of  consumers  feel  good  after  buying  The  Big  Issue,  because  they  feel  it  is  their  duty  to  help  homeless  people.  In  that  case  people  buy  the  social  aspect  of  the  company  instead  of  the  content  of  the  magazine.    No  clear  loyalty:  Based  on  people’s  opinion,  they  buy  the  magazine  once  in  a  wile,  when  they  see  a  vendor  selling  it.  However  as  the  newspaper  is  only  sold  the  Mondays  and  in  few  places  in  London,  people  are  not  strongly  loyal  to  the  brand,  because  of  the  number  of  substitute  and  their  specific  needs  as  well.    

 CUSTOMERS  END-­‐BENEFIT  

 First:  Social  benefit  and  self-­‐satisfaction  (First  Buying  reason)  =  A  way  to  reach  the  “self-­‐esteem”  on  Maslow’s  Hierarchy  of  Needs  =  Play  a  psychological  influence  on  the  purchasing  behavior  =  Related  to  culture,  social  class  behavior,  beliefs    =  Re-­‐directed  the  primary  purpose  of  the  magazine    Second:  The  actual  content  of  the  magazine  (Second  buying  reason)  =  Purchasing  directly  because  of  the  content  and  information  provided  =  Rational  reason  to  purchase        

  23  

  COMPETITVE  BRAND  ANALYSIS  

 MARKET  ANALYSIS  

PRINT:  

The  total  newspaper  market  in  the  UK  was  worth  £5.78bn,  a  26.5%  decline  on  the  industry’s  market  value  5  years  earlier  in  2006.  

The  Newspaper  Industry  in  decline:  

-­‐ Economic  crisis,  less  disposable  income  -­‐ Fewer  companies  invest  in  advertisement,  restricted  budget  -­‐ Less  advertisement  =  Less  publication  (Lack  of  budget)  

=  Decline  in  overall  sales,  circulation.  

  24  

ALTERNATIVES:  

Adapt  to  the  demand  and  environmental  situation:  

-­‐ Development  of  digital  alternatives,  more  online  news  site,  smartphone  applications  and  social  media  communication.  

-­‐ Increase  in  popularity  among  customers,  digital  age  (due  to  the  unwillingness  from  customers  to  pay  for  news,  where  it  is  available  somewhere  else  for  free).    

-­‐ Highly  reduce  the  production  costs    

  25  

The  future:  Uncertain  as  the  UK  is  still  in  a  recession  state  and  technology  as  well  as  social  changes  can  largely  impact  on  the  market.    

Possibility:  Sports  event  such  as  the  Olympics,  which  show  the  customer’s  immediate  need  toward  accurate  news.  Advertising  investment  would  also  naturally  increase.  Keynote  Statistics  has  predicted  that  the  newspaper  industry  in  the  UK  will  decline  by  4.9%  between  2011  and  2015  to  an  estimate  value  of  £5.49bn  in  2015.    

UK  Newspaper  Circulation  

  26  

COMPETITORS  TABLE  

  27  

COMPARATIVE  STRENGTHS    

STRENGTHS   WEAKNESSES  Cheaper  Prices   No  charity  or  social  involvement  

High  Market  Share   No  additional  consumer  end-­‐benefit  /  satisfaction  

Content  /  Consumer  needs   No  Direct  Marketing  engaged  Brand  Awareness    Higher  availability    Bigger  Budget    

RECOMMENDATION    

BUSINESS  TO  BUSINESS    

Increase  the  number  of  advertising  space  purchase:  Businesses  are  the  one  buying  space  in  the  magazine  to  promote  their  brand  for  The  Big  Issue  Target  audience,  which  naturally  match  with  their  target  audience.    -­‐  Because  we  are  in  a  recession  period,  people  and  business  have  restricted  budgets.  With  limited  funding,  businesses  will  cut  down  on  their  marketing  budget  and  would  prioritize  sure  and  efficient  media  channel  to  get  their  message  through,  such  as  TV  ads  through  BBC1  (high  traffic  and  established  brand).  The  Big  Issue  has  to  show  it  can  be  trusted  and  the  outcome  of  published  advertisement  will  bring  some  positive  results  to  the  company.  Nevertheless  predicted  results  are  very  hard  to  estimate,  however  The  Big  Issue  has  a  competitive  advantage:  It’s  social  promises  and  engagement.    

TACTICS:  Gain  trust  and  credibility    

-­‐ Carefully  target  their  clients:  Companies  who  have  the  same  audience  as  The  Big  Issue.    

-­‐ Clients  that  are  socially  concerned  and  engaged  or  maybe  companies  such  as  Nike,  Primark  or  Top  Shop,  who  have  suffered  from  press  releases  in  the  past  and  need  to  re-­‐position  their  brand.  If  such  brands  appear  on  The  Big  Issue  Magazine  it  would  change  how  people  perceive  it  and  the  audience  would  more  likely  forget  about  past  “disasters”  and  “unethical  faux  pas”.    

 ⇒ In  brief  it  would  mean  that  The  Big  Issue  would  take  advantage  of  personal  brand  

issue  to  offer  them  with  an  opportunity  to  re-­‐position  and  re-­‐brand.  They  would  attract  clients  through  “social  pressure”  and  convince  them  to  advertise  with  them  in  order  to  be  able  to  identify  themselves  as  being  “concerned”,  “respectful”  and  “socially  engaged”  and  build  a  new  image  into  customers’  mind.    

  28  

 BUSINESS  TO  CUSTOMERS  

 Increase  the  number  of  sales,  through  vendors  or  subscriptions:  The  Big  Issue  does  not  have  a  strong  presence  on  the  newspaper,  magazine  market.  A  good  part  of  the  population  does  not  know  the  brand  or  if  they  do  a  majority  do  not  know  what  the  brand  stands  for.      

TACTICS:  Marketing  Mix      

Product:    • Re-­‐design  the  magazine  to  make  it  more  visual  and  attractive  to  the  target  

audience  • Usefulness  of  the  magazine  (pictures,  texts,  information)  • Ameliorate  the  quality:  Chinese  producer  (cheap  prices)  

Price  • The  Big  Issue:  £2.50  /  Much  cheaper  alternatives  =  Decrease  production  cost  to  

reduce  vendors  buying  price  and  consumer  selling  price.  • Economic  crisis  =  Less  disposable  income  =  Too  expensive  product  

Place  • Invest  in  research  to  see  the  most  effective  selling  places  

People  • Train  vendors  and  teach  them  about  strategic  places  • Vendors  have  to  be  presentable,  credible  and  “educated”  =  Respectful  

 PROMOTIONAL  MIX  

 One  of  the  strategies  I  want  to  go  include  the  promotional  mix  as  a  tool  to  re-­‐enforce  the  brand  in  terms  of  its  presence,  position,  identity,  image  and  message.      Main  goals:  Build  Trust  and  Credibility  /  Create  social  implication  and  consumer  self-­‐actualization.    

  29  

The  brand  does  not  sell  a  need  but  sell  the  opportunity  for  the  audience  to  self-­‐actualize  themselves.  

• Need  to  create  them  self-­‐actualization  needs  (targeting  the  top  3  stages  of  Maslow’s  pyramid  of  needs).  

 ⇒ In  order  to  achieve  these  goals,  The  Big  Issue  has  to  be  highly  involve  and  use  

different  promotional  mix  tools.  However  as  we  imagine,  they  have  a  limited  budget,  however  some  investment  have  to  be  made  in  order  to  install  trust,  credibility,  create  essential  feelings  and  re-­‐enforce  their  position  to  at  the  end  increase  their  profit  as  well  as  the  vendors’  profits.    

 ADVERTISING  

 • Increase  their  presence  online  and  offline.  

    Online:  Through  blogs,  social  media  and  adverts       Offline:  Leaflets,  billboards  and  posters  distributed  in  shops,  restaurants  

• Ask  for  donations,  free  ad  for  social  cause  and  partnership  to  increase  brand  awareness.    

 PUBLIC  RELATION  

 • Install  trust  and  make  apparitions  

    Through  press  releases       Be  involved  in  events,  competitions  and  charity    

• Organize  competitions  with  all  the  vendors  and  benevolent  to  raise  funds.  An  example  widely  used  by  a  lot  of  companies  who  are  looking  to  raise  funds  is  a  race  around  town  or  in  the  park.  It  can  be  a  marathon  as  well  as  an  afternoon  of  activities  such  as  football,  basketball,  where  teams  would  compete.  This  would  raise  charity  funds  as  well  as  help  vendors  to  re-­‐socialize  and  gain  self-­‐confidence.  

 DIVERSIFICATION  

 PRODUCT  DEVELOPMENT  

 • Cross  selling:  Additionally  to  the  traditional  The  Big  Issue  magazine  they  could  

offer  other  products,  still  in  a  close  market:  Stickers,  pens,  hat,  t-­‐shirts…  • As  seen  previously  the  top  reason  why  people  are  buying  the  magazine  is  because  

it  make  themselves  feel  better,  however  they  are  not  that  much  interested  in  the  content.  As  a  result  I  recommend  The  Big  Issue  to  re-­‐new  their  content  by  proposing  consumers  with  more  attractive  and  engaging  content.    

 MARKET  DEVELOPMENT  

 • The  Big  Issue  is  already  present  in  a  lot  of  countries  and  should  not  stop  expending  

their  market.  Developing  countries  is  an  opportunity  for  The  Big  Issue  to  expand  to  as  they  still  have  a  high  number  of  homeless  people,  however  as  their  economy  is  growing,  a  fair  part  of  the  population  would  have  the  money  to  big  it.    

  30  

SOURCES    

Baker,  C  (2012)  “What’s  The  Big  Issue”  Available  at:  http://www.thebubble.org.uk/causes/what-­‐s-­‐the-­‐big-­‐issue  

Frangi,  L.  (2010)  “The  UK’s  Media  Consumption  Habits”  in  We  are  social.  Available  at:  http://wearesocial.net/blog/2010/08/uks-­‐media-­‐consumption-­‐habits/    Handley,  L  (27  sept  2011)”Why  The  Big  Issue  brand  needs  a  rethink”,  in  Marketing  week.  Available  at:  http://www.marketingweek.co.uk/opinion/blogs/lucy-­‐handley/why-­‐the-­‐big-­‐issue-­‐brand-­‐needs-­‐a-­‐rethink/3030458.article  

Hanks,  S  &  Swithinbank,  T  (1997)  Environment  and  Urbanization  “The  Big  Issue  and  other  street  papers:  a  response  to  homelessness”  Published  by  Sage.    

Homeless  Worldcup  Statistics  .  “AN  ESTIMATED  100  MILLION  PEOPLE  WORLDWIDE  ARE  HOMELESS.  SOURCE:  UNITED  NATIONS  COMMISSION  ON  HUMAN  RIGHTS,  2005.”Availabe  at:  http://www.homelessworldcup.org/content/homelessness-­‐statistics    Keynote  statistics:  https://www.keynote.co.uk/market-­‐intelligence/view/product/10515/newspapers    Marketing,  Strategy,  and  Competitive  Analysis:  http://www.abahe.co.uk/business-­‐administration/Marketing-­‐Strategy-­‐and-­‐Competitive-­‐Analysis.pdf  

McLeod,  H.  (June  19,  2012)  “A  Big  Issue?  Your  views  on  homelessness  in  the  UK”  in  YouGov,  what  the  world  thinks.  Available  at:  http://yougov.co.uk/news/2012/06/19/big-­‐issue-­‐your-­‐views-­‐homelessness-­‐uk/    The  Big  Issue  Foundation  (2012)  Financial  Report.  PDF:  http://www.bigissue.org.uk/sites/default/files/documents/bif_financial_statements_year_ending_31_march_2012.pdf  

The  Big  Issue  Rate  Card:  http://www.bigissue.com/sites/bigissue/files/Ratecard.pdf    The  Big  Issue  Presentation  PDF:  http://www.bigissue.com/sites/bigissue/files/TheBigIssuePresentation.pdf  

The  Big  Issue  website:  http://www.bigissue.org.uk    The  Guardian  “Big  Issue  Magazine  goes  digital”.  Available  at:  http://www.guardian.co.uk/media/greenslade/2012/oct/25/the-­‐big-­‐issue-­‐digital-­‐media  

UNESCO  (n.d)  “The  Big  Issue  United  Kingdom”  Available  at:  http://www.unesco.org/most/westeur6.htm