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Bloomberg Texas Business Plan Proposal


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Business plan proposal for a new subsidiary of the Bloomberg company.

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Bloomberg Texas Business Plan Proposal

  1. 1. BUSINESS PLAN BLOOMBERG TEXAS Merging regional business news with National Public Radio (NPR) programming within the Texas region. PATRICK GARBART
  2. 2. Disclosure Statement The purpose of this disclosure statement is to emphasize key points regarding the content within this business plan proposal. I am the sole author of this document and have not been commissioned to create this business plan proposal, nor do I expect compensation in any way. The contents of the Bloomberg Texas business plan proposal is for the purpose of creating new business opportunities for the Bloomberg company. The intent of this document is to improve the visibility and economic reporting of the Texas region; expand partnerships and business opportunities of the Bloomberg company, and its subsidiaries; and act as a catalyst for similar projects, specifically expanding global collaboration of journalism, business opportunities, and partnerships with companies and media organizations within Texas and the surrounding states. In addition, a local partnership between Bloomberg and KERA, the local National Public Radio station, will help expand public radio programming. Some facts and figures within the plan may need validation, as only authorized Bloomberg personnel have access to company financial and operations information. It’s assumed that the Bloomberg company can edit the content of this plan and use it as a template for a new Bloomberg Texas business plan concept. I have the utmost respect for the Bloomberg company, its mission, and especially the employees. Bloomberg’s global perspective sets the standard for business and economic reporting. The same can be said with KERA and NPR. Public television and radio programming provide a unique and objective look at the world, which enhances thousands of lives each day.
  3. 3. 1 I. EXECUTIVE SUMMARY The purpose of the Bloomberg Texas business plan proposal is to create a Texas regional subsidiary of the Bloomberg company, to 1) improve business and economic reporting within the region (Texas, Louisiana, Arkansas, New Mexico, and Oklahoma); 2) partner with KERA, and its programming; 3) gain a more in-depth understanding of businesses and economic indicators within the Texas region; and 4) serve as a catalyst for other projects. The goals of the plan are as follows: 1) have Bloomberg executives review the plan; 2) create an exploratory committee to analyze the contents of this plan; and 3) have the committee brief both Bloomberg and KERA executives on the viability of the Bloomberg Texas concept.
  4. 4. 2 II. COMPANY DESCRIPTION Bloomberg Texas will be created as a business and economic reporting media organization, providing news and consultation services to customers in Texas and the surrounding states. The organization will partner with the existing Dallas/Fort Worth Bloomberg Bureau to evolve journalism ventures, and expand the role of business and economic reporting, mainly through a joint venture with KERA, the local National Public Radio (NPR) station. A. Products and services include: 1. live radio segments, sharing air time with KERA 2. recorded podcasts of business and economic reporting, to include interviews with CEOs, entrepreneurs, and business schools 3. newsletters that highlight business news in Texas, Arkansas, Louisiana, New Mexico, and Oklahoma 4. a rewards program that bundles products and services into one package, one for individual customers, and another for organizations 5. advertising services for businesses, conferences, business schools, and nonprofit organizations 6. business and legal consultation services for both private and public organizations 7. hosting business conferences and workshops 8. involvement in local nonprofit organizations and fundraising events B. Key partnerships include: 1. combining programming time with KERA, which will allow the sharing of radio operations costs for both KERA and Bloomberg 2. collaboration with Non-Governmental Organizations (NGOs), media organizations, business schools, nonprofit organizations, and businesses (advertising and cohosting conferences and events) 3. expanding Press Corps collaboration 4. daily interactions with KERA journalists 5. the parent Bloomberg company, and its resources
  5. 5. 3 C. Key activities include: 1. regular business and economic reporting of the Texas region, delivered by radio anchors; business analysts; economists; senior managers in both the public and private sectors; and special guests 2. regular meetings with KERA to plan and validate alignment of goals and objectives for both organizations 3. management of rewards programs and advertising 4. business and legal consultation services 5. hosting conferences and events 6. meetings and national events with the parent Bloomberg company D. Key resources include: 1. access to the global Bloomberg community 2. shared access to NPR resources and programming, through the local KERA organization 3. the Dallas/Fort Worth Bloomberg Bureau of journalists 4. access to regional media and business organizations
  6. 6. 4 III. STRATEGY A. Branding. Bloomberg is a brand name known worldwide. The Bloomberg brand name will be used to establish partnerships in the Texas region. Eventually, these partnerships will gravitate toward Bloomberg Texas, the new brand of business and economic reporting within the Texas region. B. Partnering with KERA. Bloomberg Texas will share resources with KERA, the local NPR organization. The partnership will allow both organizations to share operations costs. Working with KERA will increase marketing potential, through events, news reporting, and fundraising activities for public radio. This will increase the growth potential of both organizations. C. Consultation services will be provided in an effort to expand the foothold of the Bloomberg Texas brand. These consultation services will be provided by professionals experienced in both public and private industries. D. In-depth coverage of key business topics, both through journalism and research. This will include prompt and immediate coverage of business and economic news. Partnering with KERA will strengthen efforts to get news first, which will enhance the positive reputation for both KERA and Bloomberg Texas. E. Providing enhanced business reporting technology will streamline business analysis. This includes offering real-time data with market and economic analyses as changes take place. As with the case of Bloomberg TV GO, the Bloomberg Texas organization will study and create pilot programs that offer new ways of managing business news and data. F. Hosting regional business conferences will act as a bridge between regional and global business sectors. These conferences will provide an opportunity for Bloomberg Texas to market its brand, products, and services. In addition, it will serve to market KERA programming and functions. G. Establishing partnerships with local communities. This includes regional leaders, industry experts, business schools, and media companies. Partnering with the business community will help market the Bloomberg Texas brand, its products, services, and more importantly, its reputation. This will help expand KERA’s foothold in the community. H. Examples of specific strategies will include managing radio time to accumulate listener participation. Some business reporting (via Bloomberg Texas radio programming) will be better suited for some time slots, while regular KERA programming will be better suited for other time slots. This may even occur in a shared time slot for primetime. For example, at 9am both KERA and Bloomberg Texas journalists could be on the same program discussing both business and special news. To ensure that goals are aligned, both organizations will meet regularly to discuss its radio programming performance goals.
  7. 7. 5 IV. BUSINESS MODEL A. The Bloomberg Texas business concept focuses on these core goals: 1. increase synergies in Texas and the surrounding states by partnering with KERA, other media organizations, businesses, universities, and nonprofit organizations 2. add depth of business and economic reporting, which builds partnerships between the Texas region and the global community 3. take advantage of opportunities for long-term regional business growth as the Dallas/Fort Worth region becomes the third largest metroplex in the United States by the year 2031(1) B. Startup operations. In the first year, the Bloomberg Texas organization will conduct planning in both facility maintenance and operations, spending the core time on planning for expansion. This includes meeting with facilities and leasing companies to determine the best possible option for creating, and expanding, the Bloomberg Texas organization. Bloomberg Texas will also meet regularly with its programming partner KERA to discuss positioning of time slots for radio programming, sharing of operations costs, and other management areas. The organization will create a staffing plan, followed with recruitment activities. C. Revenue will include the following: 1. advertising revenue from the Bloomberg Texas radio programming and segments of a possible television show 2. consultation services 3. subscription revenue from newsletters and a rewards program D. Customer relationships. A marketing director will be responsible for establishing core business relationships with regional businesses, NGOs, media, and universities. These organizations will represent the backbone of Bloomberg Texas stakeholders. As the company matures, the largest customer population will transition to Bloomberg Texas listeners and subscribers. E. Customer segments 1. NGOs. This includes businesses and nonprofit organizations. These stakeholders will receive consultation services. They will also be included in active radio programming. 2. Universities. Bloomberg Texas will become an important member in marketing university business programs and educational events. This will be accomplished throughout active radio programming and hosting special university events.
  8. 8. 6 3. The public. Listeners of Bloomberg Texas radio programming will be potential subscribers of services, such as newsletters, consultation services, and a rewards program. F. Risks, problems and assumptions 1. Risk of marginal support. Challenges may prevent support for the Bloomberg Texas organization, such as competition with other companies, barriers to entry/growth, and lack of demand from the customer base. However, through the partnership with KERA, Bloomberg Texas will be able to capitalize on the brand names of both the Bloomberg company and KERA (NPR), which will allow easier access to media, businesses, and consumers (listeners). 2. Competition with radio time. As the DFW and surrounding areas grow, there will be more competition for radio time, and with it, air time for business shows. In addition, companies like Sirius/XM may have growth in the DFW area and take listenership from regular radio programming shows. However, having access to KERA time slots, and using the brand names of Bloomberg and KERA, will help reduce this risk. 3. Ratings. Low listenership ratings for radio segments is another risk. The Bloomberg Texas organization must ensure that high quality business and economic reporting is provided, and aligned with demand from consumers. A measurement system must be in place to measure ratings for the Bloomberg Texas organization, to ensure that radio programming is aligned with consumer demand. 4. Variances in income from consultation services. Consultation services must be scaled small in the early stages to ensure initial cost outlays are marginal. This will help reduce losses when there are periods of low customer participation. As these services mature, and with it the staff, separate marketing plans can be created and monitored that ensure positive cash flows and growth. 5. Increasing operations costs. As the company matures, it will incur an increase in operations costs. As with the management of any company, cost controls should be monitored so that outlays do not stagger out of control. To help mitigate this risk, part of the proposal calls for sharing radio operations costs with KERA. Doing so will allow KERA to subsidize its radio operations costs, and will allow Bloomberg Texas to limit its exposure to hefty licensing fees by leasing radio time from KERA. 6. Legal ramifications. There are known legal risks of radio segments providing false and/or unprofessional information. To help guard against this risk, the Bloomberg Texas organization will meet regularly with the parent company, KERA, and the board of directors, receiving frequent feedback about internal controls and programming content. In addition, staff will receive regular training on professional conduct. Data validation controls will also be used to make sure the data being reported is accurate.
  9. 9. 7 7. Lack of participation for business conferences. Business conference participation will be challenging in the beginning. A marketing manager will be hired to manage regional business conferences, taking advantage of the Bloomberg brand name. As the DFW area grows, more segments of the business community will be amenable to host national conferences in the DFW area, especially because DFW is, and will continue to be, one of the most affordable metroplexes in the country, due to the competitive costs of hotels, transportation, and other related travel costs. A risk management and internal controls review will be conducted on a quarterly basis and reported to management and the board. This will give the Bloomberg Texas organization, and its business partners, more assurances that challenges are being identified and addressed before they become problems.
  10. 10. 8 V. ORGANIZATION AND MANAGEMENT TEAM A. Once mature, the Bloomberg Texas organization will be staffed with the following positions and duty descriptions: 1. Chief Operating Officer Coordinates and supervises the activities of divisions involved in the performance of the full realm of activities; ensures development of organizational work plans, short and long-range schedules, priorities, work assignments, and position structures to effectively, efficiently, and economically carry out the mission; conducts research and develops a repository of contacts, studies, observations, and other critical reviews and analysis pertinent to modernization; demonstrates critical and creative thinking and alternative perspectives during the development of concepts, requirements, and conduct of experiments through independent and unbiased critical analysis to identify potential weaknesses, vulnerabilities, gaps, and disconnects, and to challenge assumptions, hypotheses, and premises; and analyzes and interprets broad directives by higher authorities for the management of the organizational programs. 2. Marketing Director Collaborates with managers to develop short-range and long-range outreach goals; develops and executes marketing strategies and outreach events; develops surveys and collects data for business cases and assessments; using performance metrics and analytics, conducts continuous assessments of marketing and advertising programs; and evaluates the Return-On-Investment (ROI) for various marketing activities. 3. Customer Service Manager Identifies systemic problems, and studies, analyzes, and evaluates the needs of customers; develops specific solutions to meet those needs; coordinates with others to ensure requirements, products, and services are easily obtained, meet customers’ needs, and that short-term problems are quickly resolved; initiates or recommends corrective actions for quality issues and negative customer satisfaction survey feedback; develops new promotional materials for customers, including fact sheets, brochures, booklets, web applications, and other documents, that increase communication with the organizations’s target audience; and conducts workshops about customer service goals and objectives. 4. Public Affairs Director Provides sound guidance and strategic recommendations for public affairs issues that may require constant situational awareness; develops and monitors internal controls with the interpretation and dissemination of information within and outside the organization; work involves responding to national media, the public, and political opinion for matters that may involve politically sensitive and highly volatile issues; works with the Marketing Director to showcase the company’s capabilities, to attract potential collaborators for business projects; evaluates the effectiveness of branding efforts, designed to improve the company’s image; and works with counterparts at the
  11. 11. 9 headquarters office to ensure policies and responses are aligned with the parent company. 5. Legal Counsel Responsible for providing accurate legal analysis and advice regarding highly complex and difficult legal issues arising in areas of media and operational management; conducts research, analyzes findings, and applies pertinent statutes, judicial decisions, administrative regulations, and agreements, as well as original legal reasoning. The incumbent also independently coordinates legal issues with the organization and serves on various ad hoc working groups; analyzes and advises on legal implications of possible highly volatile and extremely detailed provisions of organizational programs; and provides internal and external clients with accurate legal advice and sound, innovative business solutions in support of core missions. 6. Office Manager Plans, analyzes, and executes actions involving the direction and control of administrative functions; responsible for managing the operational schedule of the Executive Office; researches and coordinates with staff elements in order to prepare for executive level travel, major events, social activities, and speaking engagements; participates in the planning, development, assembly, and analysis of documentation required for special studies and reports, and/or one-time projects; tasks specific staff and organizational elements responsible for researching, developing, and preparing documents, speeches, position papers, and briefings for the COO’s use in meetings, briefings, and social functions; and maintains a direct link with the headquarters office. 7. Other positions a. three journalists who rotate throughout radio segments b. a Bureau Chief, who will act as both a Bureau Chief and Communications Director c. a radio programmer d. an analytics professional e. existing Dallas/Fort Worth area Bloomberg staff 8. Contracted positions and services Bloomberg Texas will hire an outside auditing firm to audit records, financial activities, and compliance with media standards, to include any Federal Communication Commission rules. B. The management team for the newly created Bloomberg Texas organization will evolve in two separate phases. A summarized plan is indicated below. 1. Phase 1 (first year) A Chief Operating Officer (COO) will be selected to serve as the Bloomberg Texas project manager, to ensure the new organization is staffed and integrated in regular Bloomberg operations. Eventually, the COO will assume regular operational duties,
  12. 12. 10 acting as a bridge between existing Bloomberg area reporting operations, and the new Bloomberg Texas concept, to include beginning a new partnership between KERA and Bloomberg Texas. An Office Manager will serve to facilitate administrative functions and help the COO navigate a formal startup of operations. 2. Phase 2 (second year) In year two, the Bloomberg Texas organization will be fully operational, and will include the following personnel: Three new journalists. These individuals will manage the radio and television operations, interview business leaders in the Texas region, and serve as a conduit for partnerships and advertising services. These journalists will conduct interviews with CEOs; economists who validate and forecast economic data for the Texas region; business analysts who discuss trends; business schools; and nonprofit organizations. The Public Affairs Director will serve as the main point of contact for stakeholders outside the Bloomberg Texas organization and will assist the Marketing Director with validating the public release of information. A part-time contractor will serve as Legal Counsel for any legal affairs issues and report directly to the parent company. This individual may also serve to manage Bloomberg Texas legal consultation services. A Marketing Director will implement marketing plans, sales targets, and meetings with advertisers and stakeholders. In addition, the incumbent will perform detailed analysis of marketing controls used to accomplish organizational goals.
  13. 13. 11 VI. MARKETING PLAN A. Executive Summary Bloomberg Texas will be a subsidiary of the parent Bloomberg company. It represents a new organization that will provide news coverage, advertising, and consultation services in the Texas region. The unique feature of the organization is the new partnership between the local NPR radio station (KERA) and the Bloomberg company. The marketing analysis below will depict various forces affecting the entrance of the organization to the radio broadcast industry, as well as the organization’s long-term success. An evaluation of the organization’s strengths, weaknesses, opportunities, and threats will serve as the foundation of the marketing plan. The plan concentrates on various marketing objectives, activities, and positioning strategies to attract and retain a large customer base, both for advertising accounts and radio program listenership. New business alliances and customer-centric activities will be the key to success in achieving the organization’s marketing goals. B. Market Analysis 1. Competitive forces The competition in the radio and television industry is strong, with significant barriers to entry. Currently, there are several companies that operate radio stations in the Dallas/Fort Worth area. However, very few business radio programs make a direct link between the Texas region and the global business environment. But there are various podcasts available for listeners, via YouTube and direct websites. In addition, satellite radio offers a few business programs for listeners. 2. Economic forces Listenership and advertising revenue continues to be a challenge for radio stations. Trends indicate risks with company budgets. These challenges can certainly be complex in times of higher unemployment, such as with companies allocating less money on advertising, or listeners spending less time with subscribing to podcasts, or using the internet. 3. Political forces There are no expected outside political influences that could affect the operations of the Bloomberg Texas subsidiary. Journalism, specifically covering business and economic news, is known to be an accepted practice across the nation and rarely includes any controversial issues that tie directly with the reporting entity, in this case the Bloomberg company and KERA. However, organizational politics may be a factor when buy-in is needed for evolving operations between Bloomberg Texas and its stakeholders.
  14. 14. 12 4. Legal and regulatory forces There are significant legal and regulatory forces involved with the creation of a radio station and its programming, such as payments to the Federal Communications Commission for licensing fees. The Bloomberg Texas organization will have an advantage because of the parent company’s exposure to these types of regulatory controls, and KERA’s exposure in the local area. If the Bloomberg Texas concept is adopted, a study would be in order to identify specific legal and regulatory challenges that will directly impact the Bloomberg Texas organization. Forming a partnership with KERA will enable both Bloomberg Texas and KERA to share the burden of legal and regulatory challenges, and expenses. 5. Technological forces Digitization, compatibility with local and national radio platforms, and Information Technology (IT) software are significant challenges to create, and maintain, a radio broadcast. A broadcast engineer and IT specialist will be included in any planning stage to ensure all technological challenges are addressed and resolved. A regular review of these technological forces should be conducted as part of the Bloomberg Texas operations plan, and its risk management plan. 6. Sociocultural forces In today’s society, consumers spend less days commuting to work because of the evolution of telework programs. When employees do report to the office commuting time can be considerable, especially in the large cities. Radio is still widely used during the commute time, and at the office. An on-demand feature has been popular, where consumers can select and play their favorite shows at their own convenience. Podcasts have typically filled the need. But more research is needed to determine if YouTube and other media platforms will enhance the podcast experience for Bloomberg Texas radio programming. With comprehensive strategic planning, the Bloomberg Texas and KERA organizations can stay abreast of sociocultural changes, and incorporate those changes into radio operations and strategic planning.
  15. 15. 13 C. SWOT Analysis 1. Strengths a. The Bloomberg brand is known globally for its worldwide coverage of business, economic, and geopolitical issues. The Bloomberg company has a television program, radio shows, and a weekly magazine. This media dominance can help the Bloomberg Texas organization thrive in the Texas region. b. Bloomberg’s diverse portfolio, to include media, consultation services, and subscription services, can serve as a model for the Bloomberg Texas organization. c. Bloomberg has an existing DFW bureau of journalists. In addition, there are shared media resources in the Texas region. 2. Weaknesses a. Despite a large potential customer base, the Texas region has very few permanent business radio programs. These types of programs are usually presented as special segments for regular programming. This may reflect the actual demand for business news. b. There are barriers to entry of new radio shows. This includes startup funding, payment of licensing fees, regulatory controls, and competition from other radio stations. c. A lengthy time period may be required to market a new radio show, and achieve long-term increases in listenership. 3. Opportunities a. The Dallas/Fort Worth area is one of the largest metroplexes in the United States. It is projected to become the third largest in the nation within a few decades, or sooner. This will increase the potential customer base of the Bloomberg Texas organization, and its future partner, KERA. b. The introduction of new business radio shows should increase the potential growth of advertising accounts from businesses, business schools, and publications. c. KERA and NPR have a reputation of objective and creative journalism that can’t be found in other venues. A partnership with KERA will help the Bloomberg Texas organization create its own brand and reputation of objective and creative business and economic reporting in the Texas region. d. There will be opportunities to advertise the new Bloomberg Texas and KERA partnership on a global scale. It will be possible to create additional partnerships with other media companies, such as Netflix, to offer segments of Bloomberg Texas
  16. 16. 14 business interviews, filmed while in the radio studio. This will enable several countries to enjoy these business segments. In addition, the parent Bloomberg company can advertise Bloomberg Texas and KERA radio programming during national Bloomberg television programming and regional radio programs in New York City and San Francisco. e. The organization can reduce startup costs by leasing radio time from KERA. f. By partnering with Bloomberg Texas, KERA will have another business entity to help market its programming and fundraising efforts. The new Bloomberg Texas organization can act as a bridge between KERA’s regional fundraising efforts and a national NPR fundraising campaign. 4. Threats a. Large media companies can potentially buy up existing segments of radio networks, further diminishing opportunities to implement full-time Bloomberg Texas radio programming. b. Public transportation projects, like the future bullet train construction project between Dallas and Houston, can limit access to radio for patrons. Regular radio programming is not practical in these environments, unless the train service includes access to Wi-Fi. In this case, the radio station would have to make available a live radio broadcast online. If this comes into play, this threat may turn out to be an opportunity to advertise Bloomberg services within the public transportation domain. D. Marketing Objectives Year 1: Revenue from advertising, consultation services, and subscriptions will cover most of the basic startup operating expenses. Year 2: 50% revenue growth. A full year of operations, and process improvements, will lead to better marketing opportunities. In year 2, the organization will expand its subscription and consultation services. The revenue generated from this growth should be enough to cover the remaining startup expenses, such as furniture, equipment, and office space. Year 3: With the introduction of a Bloomberg Texas regional business conference, more advertising dollars will be spent by companies. Registration fees will be collected. In addition, the evolution of the subscription and consultation services (and a rewards program) will allow the company to increase revenue by 50%, or more.
  17. 17. 15 E. Selling Proposition The Bloomberg Texas organization will promote business news and consultation services within the Texas region, an area that includes all of Texas, Louisiana, Arkansas, New Mexico, and Oklahoma. The following slogans are options to help promote the Bloomberg Texas brand. Bloomberg Texas, where regional businesses meet the global community Bloomberg Texas, where the Texas corridor makes an impact on the global community Bloomberg Texas, showcasing the impact of the Texas region in the global community F. Pricing and Positioning Strategy Disclosure statement: The figures below do not reflect actual Bloomberg revenue. This merely represents an example for the purpose of demonstrating a business plan. Bloomberg Texas will help promote all Bloomberg products worldwide, but will concentrate its efforts on the following: 1. radio advertisements, which include both local and national businesses $100 per 15 second announcement for local businesses $200 per 15 second announcement for national businesses $0 per 15 second announcement for nonprofit organizations, and Native Americans/tribes 2. regional consultation services (first hour free) $100 per hour for legal and business consultation services * discounts for veterans, minority-owned businesses, national tribes, and nonprofit organizations ** prices will increase 10% every year, or when demand supports changing the pricing structure, whichever comes first. 3. A $12 yearly subscription fee for monthly newsletters. This includes special rates on Bloomberg products, through both a Bloomberg and KERA/NPR rewards program. 4. A special Bloomberg Texas rewards program ($25 per year) will help promote Bloomberg Texas and KERA services. As part of a long-term project, the organization may introduce a credit card that adds unique features like gifts, and special access to business conferences (e.g., having rewards program members cohost interviews with special guests). The key here is not to create a pricing strategy that matches competition, but to create one that provides value for all customers-individuals, organizations, and Bloomberg partnerships.
  18. 18. 16 G. Distribution Plan Payments will be collected online. This includes subscriptions, advertising services, consultation services, and registration fees for conferences. Concentrating all payments to an online cloud platform will streamline payments and accounting processes. H. Marketing offers 1. Free three month trial to the monthly Bloomberg Texas package. This includes newsletters, key updates, rewards, and a quarterly drawing to visit the Bloomberg Texas radio program in person. 2. Free one hour business consultation services. This will include an overview of various consultation services offered. 3. Weekends-free advertising (7 days of advertising for the price of 5). This gets businesses access to customers all week, without paying extra for weekends. This helps businesses get exposure to weekend-only listeners. I. Marketing resources and materials 1. online advertising and announcements 2. NPR advertisements (programming sponsored by Bloomberg Texas) 3. Bloomberg Texas rewards program services 4. promotional handouts for business conferences and special meetings 5. signature coffee cups with the Bloomberg Texas brand name *Bloomberg Texas will establish a partnership with Starbucks to showcase Bloomberg Texas coffee cups at Starbucks stores. J. Product promotion Bloomberg Texas will reach new customers by advertising its services through the following media: • Bloomberg Texas radio programming • media outlets through the parent Bloomberg company, such as regular Bloomberg television programming, the Bloomberg Business Week magazine, and radio shows in New York City and San Francisco • NPR programming
  19. 19. 17 • company websites • Bloomberg Texas rewards program • financial newspapers and magazines • business conferences • special segments with other media companies, such as Netflix • Bloomberg Texas signature coffee cups, available at Starbucks K. Marketing strategies for target markets Market #1 – Core listening audience This market includes business analysts, economists, senior managers, entrepreneurs, business schools, and personal investors. Providing comprehensive and timely coverage of general business and economic news will capture the attention of the core listening audience. Market #2 – Business Industry Associations The Chamber of Commerce, and similar organizations, will be included in any event planning, such as business conferences hosted by Bloomberg Texas and KERA. This will encourage these organizations to participate in any partnerships created at conferences and similar events, adding further value to Bloomberg Texas and KERA ventures. Market #3 – Government Agencies The Department of Labor, Small Business Administration, and Federal Reserve will be included in news segments. Senior government managers will be interviewed to 1) clarify facts, 2) add depth to covered topics and 3) establish long-term professional relationships with those agencies. Market #4 – Startups/Young Entrepreneurs News segments will include coverage of Startup companies that are making headway in the Texas region. This will spark interest and encourage employees of other Startup companies to engage with Bloomberg Texas content. Market #5 – Military Veterans and Minority-Owned Businesses Discounts will be provided for military veterans, minority-owned businesses, and Native Americans/tribes. This will give these populations an incentive to utilize the Bloomberg Texas services, and to listen to daily news coverage.
  20. 20. 18 L. Online strategy The online marketing strategy will consist of five distinct activities: 1. Search engine optimization. Each document, and reference, that gets posted on the Bloomberg Texas website will have strategic hashtags added. This will increase visibility and maximize the ease of searching for content. For example, “Bloomberg Texas” will be used as a strategic hashtag. 2. Daily website updates will intensify search engine algorithms. This includes adding documents, news articles, and advertising. This will increase visibility in media sites, search engines, blog site listings, and other social media platforms. 3. Online advertising will include separate hyperlinks that will take consumers to special programs and offers, such as the Bloomberg Texas rewards program and upcoming business conferences. 4. A social media strategic plan will be created to ensure Bloomberg Texas and KERA programs are actively connected and shared in social media platforms. This includes LinkedIn, Facebook, Twitter, and mainstream websites. A web designer will be hired to create an informative and easy-to-use website to increase visibility and collaboration of Bloomberg Texas and KERA programs. 5. Bloomberg Texas employees will be encouraged to have their own social media sites. Each employee can showcase their specialty and their own journalism segments. This will further increase visibility of the Bloomberg Texas and KERA brands. The company web designer will be available to assist employees with the development of their social media sites. M. Conversion strategy Bloomberg Texas will employ an initial customer survey to gauge the satisfaction of products and services received. This will ensure the company has some visibility of customer needs up front, which can assist with turning prospective customers into paying customers. A customer testimonials page will be featured to advertise customer satisfaction. This will help instill confidence with prospective customers, knowing that Bloomberg Texas can provide valuable services. Follow-up notifications are important with customer service. After services have been rendered, especially with consultation services, Bloomberg Texas will send a thank you notice to thank customers for their patronage, and it will serve as a reminder to consider using Bloomberg Texas services in the future. This will help with brand loyalty.
  21. 21. 19 To supplement the information derived from surveys, individuals will be solicited to participate in focus groups. In return for feedback, participants will get a tour of the facility, receive lunch, meet with radio personalities, and get a year-long subscription to Bloomberg Texas products and services. To add flexibility, some focus groups can be facilitated on Saturdays so that people won’t have to take off work to participate. N. Partnerships Partnerships will include: 1. daily activities with KERA, through regular radio programming 2. news segments on regional business schools, to serve as a bridge between the schools and the global community 3. creating a new national business conference, in which global organizations are invited to the Texas region to collaborate on business and economic topics 4. hosting regional business conferences 5. news coverage and sponsorship for nonprofit organizations 6. activities with the parent company, to include flying in guests from the New York and London Headquarters offices 7. creating workshops at local high schools, to get teenagers interested in business and journalism 8. supporting intern programs with regional business and journalism schools 9. participation in public radio events 10. showcasing Bloomberg Texas activities with large global media companies, like Netflix, Amazon, and Disney O. Competitive pricing When offering products and services to consumers, it’s important to consider a good initial price, while maximizing the value to customers. Initial offers will be competitive. Examples are listed below. 1. Newsletters will be offered at an introductory price of $12 per year. This will include a monthly newsletter, podcasts, and special reports. 2. Consultation services will be free for the 1st hour, then $100 per hour thereafter. Special discounts will be applied to services rendered for veterans, minority-owned businesses, Native Americans/tribes, and nonprofit organizations. 3. A rewards program will be offered for $25 per year and will include the following: newsletter subscription, a signature Bloomberg Texas coffee cup, and special offers. This includes a 25% discount on registration fees for business conferences. This rewards program will be unique and unmatched by others in the Texas region. This will be a long-term program, and may include additional products and services as operational revenue increases.
  22. 22. 20 P. Retaining existing customers The rewards program will be used to facilitate long-term purchases from existing customers, through the creation of a loyalty program. All customers will receive the following incremental discounts for rewards program loyalty: 1. 5% discount for every 5 years of patronage, in addition to a $25 gift card 2. half-price subscription to Bloomberg Magazine 3. seven day-a-week advertising on Bloomberg Texas radio for the price of 5 days 4. a monthly raffle to include sitting in the radio station during live programming, and signature Bloomberg Texas coffee cups Q. Financial performance standards The initial success of Bloomberg Texas will depend on a partnership between the parent company and KERA. This includes an initial outlay of funding from the parent company. Once the Bloomberg Texas organization is operating it will manage the following financial performance metrics. These metrics will facilitate financial projections and performance with marketing and radio programming operations. Year Listener Base Rewards Program Revenue Community Engagement* Base Year First Month’s Listenership + 50% First Month's Participation + 50% = 50% of Total Operations Costs # of Events/Year = 6 Year 2 Base Year + 50% Base Year + 50% = 110% of Total Operations Costs # of Events/Year = 12 Year 3 Year 2 + 50% Year 2 + 50% = Year 2 Revenue +50% # of Events/Year = 18 * Events are regarded as activities outside of regular programming that creates awareness of the Bloomberg Texas brand, and services. Examples include hosting business conferences, participation in KERA fundraising events, and live radio shows at business schools.
  23. 23. 21 R. Monitoring procedures The Marketing Director will ensure company activities are aligned with the marketing plan. A Balanced Scorecard will be used to brief the executive staff, to include the Bureau Chief and COO. Each month, the organization will conduct a performance metrics review. Key areas, such as those depicted in the table on page 20, will be analyzed on a monthly basis to determine success. Short-term strategies will be created to address deficiencies with metrics. An analytics professional will be used to research, validate, and present all data sets for each metric. Random reviews of these data sets will be conducted to determine data integrity.
  24. 24. 22 VII. OPERATIONAL PLAN A. The information below depicts a multi-month schedule of activities that will be implemented for the new Bloomberg Texas organization. Month 1 • meet with Bloomberg and NPR managers and key resource advisors from the parent companies • validate facts and figures within the Bloomberg Texas business proposal • create a matrix of key contacts and resources Month 2 • finalize an official business plan • Present plan to senior Bloomberg and NPR executives. If approved, move forward with activities within the operating plan. Month 3 • Schedule a meeting with Bloomberg and NPR personnel in the Texas region. The meeting will cover details about the new organization, and will give existing staff a chance to ask questions, and validate information. • draft a list of implementation activities, aligned to the operational plan Month 4 • Schedule follow-up meetings with staff and regional stakeholders. This will include KERA and NPR (to establish the new partnership), and legal entities. • document the meeting minutes • Create a list of concerns and challenges. This will be used as a basis for follow-up meetings with regional staff. • provide a status update to the parent companies Month 5 • meet with local facility personnel to discuss expanding office space • Draft a facility proposal and present to senior management for approval. This proposal will include a listing of stakeholders, cost analysis of moving/construction, and an implementation plan for moving personnel and resources. Month 6 • secure funding for hiring new personnel • begin the recruitment process for key positions Month 7 • collaborate with existing managers on establishing new roles and responsibilities • create position descriptions • create onboarding packets for new personnel
  25. 25. 23 Month 9 • hire and train additional personnel • test daily administrative and radio programming activities • implement a full scale operational exercise • meet with employees to conduct an After Action Review (AAR) Month 10 • based on the feedback from the AAR, modify operational activities to support the following programs: 1) daily radio show 2) website, with real-time regional and national economic indicators 3) daily podcasts that combine items 1 and 2 above, to include special features and interviews 4) monthly newsletters sent to subscribers • conduct another AAR • create an AAR report for senior executives Month 11 • begin monthly performance metrics review with staff Month 12 • draft a schedule of regional business conferences • create a strategy to present material at these conferences B. Long-Term Operational Activities Interviews with CEOs Part of the radio programming will include interviews with CEOs. They will feature the heads of regional small and mid-size companies, as well as CEOs of large global companies headquartered in the Texas region. This includes a business perspective of how the companies interact with the global business environment. Summaries of these interviews will be available on podcast. Transcripts from these interviews will be included in monthly newsletters, only available to newsletter subscribers. Geopolitical interviews Regional politicians in Texas and the surrounding states will be interviewed to get a full understanding of legislative actions that affect regional businesses and economies. This will include news coverage of legislation that affects the labor market, taxation of businesses, and restrictions on interstate and global commerce.
  26. 26. 24 Interviews with regional business schools Monthly shows will also include interviews with regional business schools. These interviews will aim to get a thorough operational perspective of the school, to enhance understanding of university business operations and how the school interacts with the local communities. Topics covered will include: • how the schools interact with businesses • companies that are hiring graduates • innovations in business education • subjects that are taught • new teaching methods • university operations • methods used to select professors • intern programs Behind-The-Scenes/Special Features Bloomberg Texas will take a look at various industries from a business aspect, such as the music industry. For example, what does it take to bring a concert to the Texas region, to include scheduling, tickets sales, operations, cleanups, and revenue generation? Other features can highlight what it takes to make a Startup successful, to include interviewing founders of local Startups. These segments will be aired over the weekend, along with KERA special programming. Special philanthropy section Each month, the Bloomberg Texas radio show will interview a nonprofit organization, and a well-known philanthropist. Topics in these interviews will include: • making the best use of each dollar donated • organizations that are making headways for social change • the career outlook in nonprofit organizations • how nonprofit organizations interact directly with regional businesses • opportunities to create partnerships with nonprofit organizations Conferences Business conference development is another investment opportunity for this plan. Bloomberg Texas can begin this venture by co-sponsoring a small regional conference. This will allow the creation of micro partnerships with regional companies, universities, and nonprofit organizations. As the conferences evolve, Bloomberg Texas will take a more active role with advertising Bloomberg services, magazine subscriptions, the cable TV channel, and TV Go. Booths will be placed at the conferences so that consumers can watch a live radio broadcast nearby with celebrity reporters. Conference participants can interact with special guests. Conference agendas will include interviews with key leaders; how IT infrastructure affects businesses; how small businesses can use economic indicators to improve forecasting; business planning/strategy; breakout sessions for Startups for veterans and minorities; and Bloomberg consultation services onsite.
  27. 27. 25 VIII. FINANCIAL PLAN A. Revenue streams Revenue will include the following: 1. Advertising revenue from Bloomberg Texas radio programming. The Marketing Director will set up advertising accounts with businesses to help launch the first radio broadcast. The goal is to advertise 10 businesses in the first week of broadcast, and multiply those accounts by 50% each month for the first two quarters until a weekly quota of 50 advertisements is achieved. The fee for each 15 second advertising announcement will be $100 for local businesses and $200 for national businesses. 2. Consultation services will begin simultaneously with the setup of the new advertising accounts. The Marketing Director will look for new customers for these services, especially in the beginning stages of the Bloomberg Texas organization. The goal is to find 20 customers (20 billable hours) before the first radio broadcast, and then increase the billable hours by 30% each month for the first year. The first hour of consultation is free, then $100 per hour thereafter. 3. Subscription revenue from newsletters will be collected approximately one month after the first radio broadcast. Time will be needed to develop content for these newsletters. The goal is to have 100 subscriptions to these newsletters during the first month of radio broadcast, then increase that number by 50% every month for the first year. The Bloomberg Texas website will be seen by, and marketed to, the global community. Subscribers will include paying customers outside the Texas region. A yearly newsletter subscription will be $12. 4. A rewards program will be available for $25 per year. However, the organization may not see a significant revenue stream from this program in the first year. For now, the financial projections for the rewards program will be left out. The following pricing matrix will be used for different customer segments: • companies/large organizations Full price • Startups 10% discount • military veterans and minority-owned businesses 25% discount • nonprofit organizations and Native Americans/tribes Free B. Cost structure During the first year, the bulk of the operations costs will be as follows: Salaries/benefits for 10 personnel $1,000,000 Office space/leasing costs/utilities $ 100,000 These expenses will be prorated at a monthly cost of $92,000
  28. 28. 26 C. Financial projections The chart below depicts a financial projection for year 1 revenue, based on the figures presented in section A on the previous page. Revenue for future years is expected to increase. A break-even point will be achieved NLT the end of year 2. Starting in year 3, a net profit will be achieved, at which time the company can begin expanding operations, to include the introduction of new programs and hiring more personnel for future growth. $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 QTR 1 QTR 2 QTR 3 QTR 4 TOTAL Year 1 Revenue ADVERTISING CONSULTATION SUBSCRIPTIONS
  29. 29. 27 VIV. APPENDIX - FOOTNOTES Footnotes from page 5 (3rd core goal): 1 The Texas Tribune. “Dallas-Fort Worth metro area saw biggest population growth in Texas in 2018” The Texas Tribune, 18 April 2019. Web. 1 The Dallas News. “When will D-FW overtake Chicago to become the nation’s 3rd largest metro area?” The Dallas News, March 2018. Web.