“Disfrutando la vida en todas pates”

“Enjoying life everywhere”

SOMOS

New York

“We are New York”

BUSINESS CONCEPT

• SOMOS New York magazine, is a city magazine

• Focuses on New York’s Hispanic/Latino culture.

• Spanish written guide for tri-state residents, new immigrants and visitors.

TARGET CUSTOMER

• Estimated Hispanic/Latino population in New York is 1.9 million.

• Age group: 18 to 35 years old

COMPETITIVE EDGE

• One-stop shop magazine for all local information.

• Online version, translated into English.

• 24 issues per year – Retail price $3.99– Yearly subscription is $48.00– Online access: $20.00

DISTRIBUTION

• Magazine distributors and wholesalers.

• Bodegas, newspaper stands, supermarkets, etc.

• Subscriptions purchased through somosnewyork.com and mailing subscriptions directly from consumers.

FOUNDING TEAM

• James Perce, Publisher

• Indra Rodriguez, Advertising/Marketing Director

• Sheila McGeough, Editor in Chief

INDUSTRY MARKET ANALYSIS

• Publishing industry annual revenues $24.77 billion.

• In 2004 $12.4 billion spent on magazine advertising

• 2003 vs. 2004 Hispanic/Latino magazine titles grew by 15.9%

INDUSTRY MARKET ANALYSIS

• In 2004 , top 50 magazine advertisers spent $8.1billion, which include:

– Procter & Gamble, $620 million.

– General M&otors $480 million.

– Altria Group Inc. $420 million.

COMPETITIVE ANALYSIS

2004 Sales

• AOL Time Warner: $42.1 billion

• Advanced Publications Inc.:$5.9 billion

• Hearst Corporation: $4.1 billion

• Primedia Corporation: $1.3 billion

DIRECT COMPETITOR

• Time Out New York, based London England.

• Current circulation 139,108

• 2003 Revenues of $45 million

COMPETITVE ADVANTAGE

Hispanic/Latino consumers

• High density population:

Puerto Ricans, Dominicans, Mexicans,etc.

• Brand Loyalty

DEMOGRAPHICS

• US Hispanic population:35,305,818

• Hispanic purchasing power $767 billion in 2005

• $1 trillion by 2010

MARKET SEGMENTATION

• NY Hispanic/Latino population 18 to 35 yrs old : 1,974,551

• Acculturated: 60% of population. Bilingual

• Assimilated: 20%. English only

• Isolated:20%. Spanish only.

DISTRIBUTION

• Single copies: Newsstands distributors, bodegas, supermarkets, bookstores.

• Subscriptions

• Website

ENTRY STRATEGY

• Mailing list

• Postcards

• Promotional letters

• Sample magazines

PRODUCT DESCRIPTION

• Editorial content: Sections of the magazine

• Characteristics: Pricing

• Technology Assessment: website

• Prototyping and testing: Test mailing

• Intellectual Property: Patent, copyrights

OPERATIONAL PLAN

• Location

• Production and operation procedures

• Distribution methods

• Quality Control

• Auditing Organization

• Customer Service procedures

ORGANIZATIONAL PLAN

• Philosophy

• Legal structure

• Organizational chart

MARKETING PLAN

• Purpose

• Business identity

• Target market

• Unique market niche

• Plan to reach first customer

• Marketing Advertising strategy

FINANCIAL PLANS

• Break-even analysis

• Financial statements

• Plan for funding

GROWTH PLAN

• Expansion of Somos Publishing magazines

• Ancillary Products

CONTINGENCY PLAN

• Strategies for dealing with deviations from the plan

– Selling

– Going Public

– Venture Capitalist

– Employee buy-out

TIMELINE TO LAUNCH

2006

June: Target market

July: Editorial content

August: Circulation plan

September: Test mailing

2007

January: To Launch 1st publication

THE END

GRACIAS