----------------------$300,000Pricing----------------------------------------------------$0Distribution----------------------------------------------$1,000,000Contingency---------------------------------------------$500,000Rationale:We want to induce trial. In order to accomplish this objective, we need high levels of reach. The effective reach calls for a better distribution network. We also need to advertise so that prospectives become aware of the changes in The Miami Herald. Now, The Herald covers their communities. THE PRODUCT1. SeasonalityNot considering special events or news stories with above average importance, newspapers are sold almost equally in every week of the year. 2. Purchase CycleNewspapers are purchased either on a daily basis or weekly (meaning the Sunday edition). However, factors such as family coupons on certain days of the week may opt readers to purchase the newspaper.Subscription standard rate:4 days Thursday, Friday, Saturday and Sunday: $25.913 days Friday, Saturday, and Sunday: $21.91Sundays Only for 13 weeks for $14.19 Promotional prices: 3 month subscriptions $24.124 days $13.64Sundays only for $7.171 year for $109.6026 weeks for everyday delivery $54.84 TARGET MARKETDemographicsThe primary target market of The Miami Herald is white non-Hispanic men and women over the age of 65 that have a yearly household income above $50K. The secondary target market is Hispanic men and women between the ages of 35 and 54 that have $35K+ yearly household incomes (Note: See Appendix A). Readership consists mostly of middle to middle-upper socioeconomic class. Most readers have some college experience and work in a professional or managerial job. Also, 73% of Sunday readers are from Miami-Dade County.PsychographicsThe Miami-Ft. Lauderdale audience is more likely to attend cultural/arts events; take cruise ship vacations; engage in foreign travel; and enjoy gourmet cooking & health foods. In addition, our audienc...
