OUGD502: Study Task 1 - Collation: Presentation Feedback

OUGD502 Study Task 1 - Taking Care of Business 

Collation: Presentation Feedback 

The presentation ran smoothy and I feel we presented the concept successful as there were no follow up questions about the concept proving effective articulation of our business plan. Feedback stated that our business plan vas very well researched which informed our decision making. Due to the small run of the first issue it was suggested we would sign and number them as promote them as limited edition collectors items to create a buzz around the launch and make the first issue more desirable. 

We were praised for the research into advertising budgets and identifying a successful client base of advertisers such as arts universities due to the target audience of student creatives. It was concluded that the business plan had potential and it was sensible to began as a bedroom start up that provided the most security and expansion. Overall I was impressed with the quality of our presentation and the feedback received demonstrating a critical understanding of the task and a commercial practice. 

OUGD502: Study Task 1 - Collation: Presentation

OUGD502 Study Task 1 - Taking Care of Business 

Collation: Presentation

I took the lead on the collation and creation of the presentation creating the template and colour palette. I opted for minimal text to ensure the presentation slides weren't too words which would distract the audience instead opting for brief summaries that would be verbally expanded on during the presentation. We worked on a running order that would seamlessly flow through the content to ensure the presentation had a natural progression making it the most accessible for the audience. 

With the presentation developed we then distributed the individual slides that each group member would elaborate on, we based this upon the individual research topics we assigned as we would have the most in depth knowledge about these slides, we then distributed the rest of the slides evenly to ensure each member had a even workload. I elaborated on the concept, issue 1 breakdown and finance. We practised this presentation as a group several times before the presentation as well as that morning to ensure it was succinct and professional as well as trailing a range of sample questions to ensure the presentation ran as smoothly as possible. 

OUGD502: Study Task 1 - Collation: Logo

OUGD502 Study Task 1 - Taking Care of Business 

Collation: Logo

With all the research collated we met to begin organising the presentation. We decided to create a range of mock ups to bring our business plan to life, this would included a logo, mock up publication and website mock up as this would add a professional engagement that will aid with the articulation of our presentation and business strategy. 

Due to my interest in branding I was assigned the logo to develop, this was a key visual element that would be featured on all the collateral, promotion and mock up materials therefore needed to be representative of the platform and appeal to the target audience. 

We quickly established a typography based logo as this is more suited to a publication. The name bodies worked well for this constructed as a group effort. I quickly began experimenting with a range of typefaces with custom kerning and tracking to create a unique logo. These experimentations included outlines and a mix of serif and sans-serif typefaces, Receiving constant feedback from the rest of the group as to which design treatments were the most appropriate. I took inspiration from the cereal and supplement logos as these magazines fit our luxury aesthetic and target a similar audience to our platform. 

Through the range of development we collaboratively decided on a final logo design. This used the base font of bodoni with custom kerning and tracking to create a unique and identifiable logo for the our platform. The o featured an innovative dot within the o as through research I found this to date back to symbols about human interaction and togetherness which I felt was fitting to our concept and added a unique personable touch that would make our logo stand out and become representative of the brand. The final logo is strong and sophisticated with a sans serif typeface that connotes luxury and will appeal to both the target audience of students as it looks prestigious and industry professionals with the strong execution of the design. 

Final Logo

OUGD502: Study Task 1 - Research: Advertising

OUGD502 Study Task 1 - Taking Care of Business 

Research: Advertising 

General research into advertising and studying A Level media studies lead me to understand how advertising is a critical component within any magazine. However we didn't want the feel of our publication to be too commercial or overloaded with adverts that it detracts from the actual content. We financially needed to included advertisements within the publication however decided to be quite selective regarding the types of advertisements. As the specialist nature of the magazine if aimed at graphic design and extending to other creative disciplines I wanted to keep this focus within the adverts, this will ensure ensure they are more relevant and appeal to the target audience. Adverts such as GF Smith, Pressision will help keep production costs down, Offering art focused universities such as Leeds college of art and UAL advertising would probably appeal to them as its a student focuses magazine. Other potential advertisers would be material websites such as Fred Aldous and the likes of D&AD YCN could provide a substantial advertising budget for us to work with. 

To get a better idea of costing for this I emailed the marketing department within the college to find out how much they spend on advertising and what would be feasible to charge. They were really helpful in regards to this informing me that they would pay around £1000 for a full page advert. She further enclosed the advertising budget of the End of Year Show held at the college, giving added insight into how much the competitors magazines charge such as creative review and computer arts. With this research we concluded an estimated £1000 advertising budget based on 10 full page advertisements which would offer a nice balance  between content and advertisements. This budget would cover the cost of the production and support the bulk of the business venture so is an essential piece of the business plan in order for the venture to be viable. 

OUGD502: Study Task 1 - Research: Pricing and Production

OUGD502 Study Task 1 - Taking Care of Business 

Research: Pricing and Production

The production of the magazine would ideally be subsidised in return of advertising within the publication. GF smith, fedrigoni and other quality paper merchants would all be contacted with opportunity to use their papers within the publication at a reduced cost for prime advertising placement within the book. Similarly Pressison would be the first choice for printers due to their creative experimental approach I learnt about during a visit to the factory at the end of level 4. Again offering advertising to subsidise the printing costs. 

To get a rough estimate of unit prices for the first edition I contacted a number of retailers to enquire about quantities and experience etc. Due to the specialist nature of the publication I contacted independent creative bookshops for example Village and Colour May Vary both located in Leeds. Colours may vary responded very helpfully giving estimated quantities of a new publication. This helps to but costings into perspective as if each independent bookstore ordered 10 copies this could be generalised to 10 bookstores throughout the UK in the major cities and those with art schools such as London, Manchester, Bristol, Glasgow, Liverpool, Leeds. This rationalised a first run of 100 units that could be sent to independent bookstores then with growing awareness and success this would be expanded in scale and even internationally. 

With a informed decision producing a run of 100 for the first issue, I started to look at pricing estimates, Looking online gave a rough instant quote for initial costing ideas that could later be refined through negation with paper smiths and printers for advertising as mentioned above. For an 80 page publication with a run of 100 I found quotes of £635 and £514 this creates an average of £574.50 dividing this by 100 gives a unit cost of £5.75 per magazine for the first issue. 

With an estimated cost price of £5.75 per issue I started analysing similar magazines to see their retail prices therefore informing our decision to fit within its competitors pricing brackets. Due to the high quality finishes within the publication these specialist magazines retail for more than general interest publication. Examples such as Supplement and Cereal both retail for £12 however this extends upwards into the £20+ for more detailed publications. 

Based on this we decided to market the our publication at a retail price of £14 which is still feasible for the target audience of students. The higher retail price ensures that quality materials, finished and stocks can be used to reinforce the higher price point and further engage the target audience. 

With an estimate of £5.75 per unit, we would sell the publication to the bookstores for £10 resulting in a £4.25 profit on each unit which is a 73.9% mark up for us. This would further result in a 40% mark up for the retailer who would make £4 profit per unit. 

Based on these estimates the first issue would result in a 42.55% profit margin with the actual profit being £425.50. This would then rapidly increase as the publication grows adding more retailers with higher volumes. 

OUGD502: Study Task 1 - Research Distribution

OUGD502 Study Task 1 - Taking Care of Business 

Research Distribution

With a concept and business type identified we then turned our attention to the background considerations that would have to be carefully considered in order to create a successful resolution and ultimately an informed and accurate business plan. The background considerations stated Two/three/four heads are better than one as long as they communicate. You have the luxury of four pairs of hands. How will you use them effectively? You will need to consider the following:

•What skills and services do you have to offer?

•Who is your target market?

•Who is your competition and how will you compete?

•What are your costs, charges and financial considerations?

•How will you structure your studio?

•Who will be responsible for what?

•How will you promote your services? To who? Using what media?

Looking into these we then assigned specific considerations to each member of the team to ensure the most efficient and productive use of time when collating this information. As the financial considerations was an exceptionally large area to cover I volunteered to research this element of the business plan as this covered the workload of two of the smaller research considerations. Having an A in business GCSE I had a small previous experience of business costings and felt I would be able to accurately propose a set of financial considerations for the company. 

OUGD502: Study Task 1 - Business types: Research and Conclusion

OUGD502 Study Task 1 - Taking Care of Business 

Business types - Research and Conclusion

As a collective we distributed different business types to research, I was given an 'ordinary business partnership' to research. From this topic I uncovered that in an ordinary business partnership, you and your business partner (or partners) personally share responsibility for your business. It was further identified that you can share all your business’s profits between the partners. Each partner pays tax on their share of the profits.

The serious stuff included: 

Legal responsibilities

You’re personally responsible for your share of:

• any losses your business makes
• bills for things you buy for your business, like stock or equipment

You can set up a limited partnership or limited liability partnership if you don’t want to be personally responsible for a business’ losses.

A partner doesn’t have to be an actual person. For example, a limited company counts as a ‘legal person’, and can also be a partner in a partnership.

You must choose a name for your partnership and register it with HM Revenue and Customs (HMRC).

Tax responsibilities

The nominated partner must send a partnership Self Assessment tax return every year.

All the partners must:

• send a personal Self Assessment tax return every year
• pay Income Tax on their share of the partnership’s profits
• pay National Insurance 

The partnership will also have to register for VAT if you expect its takings to be more than £82,000 a year.

From this research I concluded that this would probably not be the most appropriate business type for our company as coming straight from university we would not have significant capital to invest and feel it would be bit risky being personally responsible for the business with no real business experience. The fact we are legally responsible for any losses or bills re-assures me that this would not be a viable business option for the group. 

CONCLUSION: 
We reconvened and presented our business types to one another. From this we as a group concluded that the most appropriate business type for are concept/business was a ..........