Company Analysis - (ECO-740)

1. INTRODUCTION

Magazines have been the choice of most Malaysians to read in occupying

their leisure time. Regardless on the type and topic being discussed in the

said magazines, people at all income levels choose to have one as long as it

suits their reading pleasure. Have we ever think about how those magazines

could attract and influence readers to keep on buying or subscribing the

magazine of their choice? The magazine is not only for reading pleasure but

also could affect the readers’ lifestyle. Nevertheless, reading magazines has

created another niche market (demand) for those who appreciate creativity in

writing business.

For the purpose of completing this assignment, Blu Inc Media Sdn Bhd has

been selected as medium of analysis; who has been one of the prominent

publishing companies in Malaysia that has the overall capabilities and experts

in enduring the publishing business. The Blu Inc group is Malaysia’s biggest

publisher of magazines with 22-well known newsstand and contract titles in its

portfolio. Further elaboration will focus on the company’s evaluation

pertaining to demand for range of magazines, the competitive pricing

decision, the production costing involved and how the company invents new

ideas in sustaining the company’s position especially in the global market.

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2. COMPANY BACKGROUD

Blu Inc Media Sdn. Bhd. publishes monthly magazines in Bahasa Malaysia,

Chinese, and English languages for men, women, and adults in Malaysia. Its

magazines provide celebrity news, information on health and fitness, advice

on relationships, information on lifestyles and sex, information for female

brides, fashion and beauty trend updates, and information and guidance on

great styles of living. The company has partners and affiliates in the United

States, France, Singapore, Indonesia and Thailand. The company is based

in Petaling Jaya, Malaysia. Blu Inc Media is an associate of SPH Magazines

Pte Ltd which is part of Singapore Press Holdings Limited.

Blu Inc Group owns Malaysia’s most established English women’s lifestyle

title, Her World since July 1960 and still actively catering for today’s modern

Malaysian business.

2 (i) VISION

To be the leader in the magazine publishing industry in Malaysia.

2(ii) MISSION

Create and develop top quality brands and multimedia extensions that

offer sustainable profit and growth.

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2(iii) CORPORATE OBJECTIVE

Build and ensure long-lasting relationships with readers, advertisers &

stakeholders.

3. DEMAND ANALYSIS

Why are Blu Inc magazines the best seller? The magazine demand from Blu

Inc has linkage to the following elements:-

i) Blu Inc is strong because of the size and reach of the company.

ii) Has partners and affiliates in the United States, France, Singapore,

Indonesia and Thailand.

iii) One-stop publisher – Has extensive contacts and diverse titles in

Malay, Chinese and English make it of choice for readers and

advertisers.

iv) Give readers what they enjoy, desire and aspire to be with every

flip on the page.

v) Proudly releases quality titles every month.

From the above, it is proven that Blu Inc has been an established publishing

company that carries prominent magazines titles. This very much relies on

the position of international branding strategy that has captured the public

attention.

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Besides, Malaysian market serves multi languages and Blu Inc shall increase

it magazines production capacity to cater the need of various multi-languages

such as Malay, English and Chinese.

In addition, Blu Inc Media also has conducted several market surveys in

ensuring their magazine they produced is meeting the readers’ expectations.

For instance, content that relates the current lifestyle, latest health

information, latest fashion or trend being demanded etc. Thus, readers will

definitely enjoy reading those magazines and just could not wait to flip

through all pages to read the contents of the preferred magazines. From the

market survey also, Blu Inc Media creative writers will have some ideas to

gauge the various topics to make their magazines become the center of

attraction.

Attention to quality and the variety of their titles make Blu Inc unique;

customizing their magazine’s editorial contents to match the readers’ likes

has made them a trusted name in publishing. Ensuring that their magazines

maintain the visual strength and unique positioning give to their magazines

edge. This stringent respect for all-round editorial and design quality are the

cornerstones of their success.

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4. PRICING

At Blu Inc media they believe in giving readers the best quality of magazines

with competitive pricing. Overall the range of magazines is priced between

RM5.60 up to RM12.90 per piece. Blu Inc Media pricing strategies are based

on the quality of paper used, cost of production / printing and also competitors

pricing. In adding value to the purchase of each magazine, there will be

monthly freebies or premium items to be enjoyed by readers. For instance,

giving out free perfume and cosmetic samples and throughout the year, there

will also several contests being conducted to retain and add the number of

monthly subscribers.

5. ONE STOP PUBLISHER

Blu Inc Media is also known as one-stop publisher whereby through its

extensive contacts such as United States, France, Singapore, Thailand and

Indonesia and ability to produce diverse titles monthly in English, Malay and

Chinese make the Blu Inc Media the one stop publisher of choice for its

readers and advertisers.

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Blu Inc Media overall activities of producing from creative writing, exclusive

photo-shoot, high quality printing, etc of a particular magazine is being done

at the company itself. This is very distinctive compare to other publication

companies. By having a one-stop center, the management could control the

overall costs involved or incurred in the production of the said magazines.

6. PRODUCTION

The Blu Inc Media proudly releases quality titles every month. They have a

combination of local and international titles, and special publishing titles which

are put together to inform, entertain and fulfill the readers’ needs. Their wide

arrays of titles are popular newsstand favorites that have touched and

influenced the lives of many people.

Her World, Female and Nuyou remain Blu Inc Media most established local

titles. The hugely popular Glam and the well-thumbed EH!, the exclusively-

read The Peak and ICON, and architecture and interior Glam Deko are other

Blu Inc Media local titles.

International titles Marie Claire, Seventeen, Men’s Health, Shape and Golf

Digest are testimony to the fact that Blu Inc are sought out as successful and

capable business partners to handle these franchise or licensed titles.

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Custom or special publishing titles such as Going Places, the in-flight

magazines of Malaysia’s national carrier, CIMB Preferred with its lifestyle

content ranging from luxury travel to high fashion and cuisine and YTL

Corporation who draws it elite circle of privileged readers into a finest luxuries

lifestyle many can dream off are all the confidence that the Corporate clients’

have towards Blu Inc Media in producing it in house magazines.

MAGAZINES TITLES PRODUCED BY BLUE INC MEDIA

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7. COST ANALYSIS

Blu Inc Media offers various advertising rates depending on the magazines

titles as well as it languages. Rates are different due to:-

a. the volume produced of the magazines,

b. the position and size of the advertisement in placed in the magazine

such outside back cover, inside front cover, double page spread, full page or

half page.

c. the frequency of the advertisement appeared in the magazines which

depend on 1 time, 2 times, or up to 12 times insertion in a year.

RATE CARD – ADVERTISING RATES

Position / Frequency 1x 2x 3x 4x

(RM) (RM) (RM) (RM)

Outside Back Cover 8.075
Inside Front Cover Special 13,200 12,540 11,880 11,220
Double Page Spread 11,000 10,450 9,900 9,350
Full Page Four Colour 5,500 5,225 4,950 4,675
Half Page Four Colour 3,800 3,610 3,420 3,230

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RATE CARD – ADVERTISING RATES

Position / Frequency 3x 6x >12 x

(RM) (RM) (RM) (RM)

Outside Back Cover 9,450 5% 10% 15%
Inside Front Cover 8,400
Inside Back Cover 7,920
Double Pabe Spread 14,000
Full Page 7,000
2/3 Page (vertical) 4,620

8. MARKET COMPETITION

Blu Inc strengths in making a difference include the followings:-

8 (i) Quality

Attention to quality and variety of it titles.

8 (ii) Customize

Customizing the magazine’s editorial contents to match what reader’s

preferences.

8 (iii) Unique

Ensuring that the magazines maintain their visual strength and unique

positioning give the magazine their edge.

8 (iv) Respect

This stringent respect for all-round editorial and design quality are the

cornerstone of Blu Inc Media success.

9. COMPETITORS

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As a prominent publisher, Blu Inc Media able to withstood the test of time in a

very competitive arena flooded with competitors magazines such as Tattler vs

The Peak, In Trend vs Female, Woman’s Weekly vs Her World, Cleo Vs

Marie Claire, Anjung Seri v Glam Deko and many more in line.

Being able to produce new titles in the market as well as increase the volume

and frequency from bi-annual publication in 2008 to bi-monthly magazine in

2010 for Glam Lelaki and Glam Deko proven that Blu Inc Media has achieved

good reputation in the industry compared to the competitors.

10. INNOVATIONS

Innovations lead to minimize costs of production. At Blu Inc Media, they

believe in exploring the latest technology applied in producing the magazine.

So much so, by incorporating the various techniques in enhancing innovation,

Blu Inc believes they could achieve their desired goals.

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10 (i) Focus Group

This technique could be considered as Quality Assurance group

that will be meeting with the selected readers to provide

feedback about the magazines being sold in the market and

would be able to provide positive comments in terms of

improving the appearance or contents of a particular magazine.

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10 (ii) Magazine Revamp

New looks, new designs, new contents are among the things

that involves in the revamp of the magazine. New blood that

joined Blu Inc Media who comes with the new idea combined

with the experienced editor who has the ability of think out of

box on how the magazines can inspire the readers would be

able to change the magazines to suit the readers need.

10(iii) Branding & Promotion Monthly Events

In order to stay relevant to the readers and in compensate with

the readers and advertisers contribution towards the magazines,

list of monthly events namely entertainment, lifestyle, fashion,

golf tournament, education, charity and etc. from the various

titles awaiting everyone in the industry. For instance, events

such as Blu Inc Media Advertisers Appreciation Nights which to

thank the advertiser for their continuous support, The Great

Guardian Makeover co-partner with Guardian allows the

readers/ customers to enjoy the great saving for a selection of

great brands make up when they visit or join the event.

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10 (iv) Monthly Newsletter

To cater the readers need, Blu Inc Media without fail produces

the Monthly Newsletter gives the best highlights of all its titles.

All topics are covered from haute fashion to hot health tips.

Source from experts will be delivered straight to the inbox

subscriber.

10 (v) Bumper Road Show

Bumper Road Show is the Blu Inc Media annual event where it

will do a road show at different states in Malaysia in promoting

its magazines. Clients would normally look forward to

participate in this annual event as a platform for them to

introduce their products to their customers/readers.

11. GLOBALIZATION

In this information and technology era, not even one company wanting to be

left behind. Similar to Blu Inc Media, they also believe that would be able to

entrench into new global market and sustain in the competitive edge would be

their great advantage. In line with this, Blu Inc Media able to deliver new

value to the customers by moving forward with the new digital media in

meeting the global challenge. Blu Inc Media through its web team has taken

the challenge by focusing on improvising the company website which at the

same times updating digital contents of the magazines for its readers.

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12. CONCLUSION

Blu Inc Media has developed its strategic business models in order to sustain

and achieve higher profits in the market. Through the competitive strategy

Blu Inc Media has secured differential access to key resources by having

homegrown, licensed and special titles. Further, the design of its’ business

process which comprise of variety titles, languages and partners to few

overseas well known titles able to create unique value for Blu Inc Media’s

target customers. Finally, to sustain its positioning in the magazine industry,

Blu Inc Media gives a serious focus on innovation.

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REFERENCES

1. http://www. bluinc.com.my

2. http://www2.xlibris.com

3. http://www.bplans.com

4. http://www.referenceforbusiness.com

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