Prepared: August 28, 2006EXPRESS: Marketing Plan

I. BIG IDEA: EXPRESS is the latest, most informative & most sought after FREELY Circulated Tabloid to hit People in Transit. It empowers Advertisers Brands market their products and services to an ASSURED and sought after 18-35 broad C target market. II. The Challenge

Goal: P50M Gross Annual Ad revenue per Year targeto P4,166,666 gross advertising monthly targeto P208,333 gross ad sales/day target

Roughly 50% of Inquirer Libre 2005 ad revenue of P99.7M -Based on Nielsen – rate card basis

2004 Jan-Dec- Income P83.4M on rate card 2005 Jan-Dec- Income P99.7M on rate card 2006 Jan-Aug 22- Income P58.9M on rate card

To get net figures, further remove 30% from rates Sales Figures:

o Gross Profit of P10,400,000 (at projected P50M target, even spread of 12 months)o P39.6M Breakeven Point (P3.3M breakeven/month, P165,000/day)

Based on CEC projections- Monthly out Production- P2M Three (3) staff- P100,000 Sales Commissions- at 10%- P500,000 Distribution- 80,000

Strategic Goals: o To Be the Paper of Choice By the MRT/LRT Riding Public

Must be Relevant, Trendsetting & Maverick Provides Daily Promo Coupons

o To Be the Preferred Advertising venue by the advertising players Awareness Campaign- 1st 3 months

Tie Up Content with Winning Media Brandso GMA 7? QTV? Jack TV? ETC? Cinemas? 89.9TM?, Jam 88.3?, 101.1

Yes FM Agency/Client Presentations

Reader Feedback Surveys- Strictly monitor right after launch

III. Situation Analysis

Company Analysis: Express & KPC Goals: In Need of new source of revenue to arrest losses in current MST operation Focus: Make Express breakthrough product of KPC Opportunity: Create synergy with existing Manila Standard Today paper. Culture: Traditional Strengths:

o Connections/Ties with MRT/LRT Head of Operations

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o Existing Printing Facilitieso Existing News Editorial Writers/Contento Principal with Big Warchest

Weaknessess:o Content Managemento Dilapidated Printing facilitieso Principal stringent with investing further based on past experiences.

Market Share: MST at 1% market share in terms of Ad revenue, 0.5% in circulation (as per AC Nielsen 2005 data, MST at P47M vs.P7.7B tot print ad rev)

Customer Analysis

Number: Total 22.9M monthly riders (763,000 daily riders)o MRT- 10.7M monthly (source: www.dotcmrt3.gov.ph)o LRT 1- 8.7M monthly (souce: www.lrta.gov.ph)o LRT 1- 3.5M monthly (souce: www.lrta.gov.ph)o

Type: Students & Urban Professionals aged 16-40 Male FemaleNote: More advertisers target WomenJustification: as per Nielsen, 8 out of 10 top magazines ad revenue target female market

Value Drivers: Jobs, Shopping, Gimmick, Entertainment, Showbiz Gossip, Fashion Trends, Music, Cellphones/Gadgets, Food, Sports

Decision Process: Quick, Easy to shift, experimental and experiential, fickle Concentration of customer base for particular products

o Personal Hygiene, Groceries (Food/Beverage), Telco, Cellphones/Gadgets, Alchoholic Beverages and Cigarettes, Fashion, Pharma, etc.

Competitor AnalysisINQUIRER LIBRE

Market Position: No. 1o 95% in terms of Ad revenue- P99.7M vs P3M of Pasayo

Strengths: o FIRST-established brando Anchored on strong brand- Inquirero Strong brand name- LIBREo Wide advertising acceptanceo Horoscope- Against tradition, it’s funny, appeals to MRT audience

Weaknesseso Distribution & Availabilityo Terms of deployment (First come first serve)

Market Shares (in terms of Ad Revenue)o Inquirer Libre- 95%o Pasayo- 5%o Star Blitz- 0%o Transit 0%

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Note: Inquirer Libre is sold on its own, ‘Not’ as a combo package with Inquirer. The combo package exclusive to Hip/Inq Magazines (Swing, MPH, Gaming Monthly, Burn)

Collaborators

Subsidaries, joint ventures and distributorso MRT benefit/ Revenue (distributor)

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o Tie Ups with companies to provide discounts (content joint venture)o Tie Ups with Media brands to guarantee tri-media promotions (content joint venture)o Opportunity to freely circulate in other areas (e.g. Malls, Paking Areas, Bus Stations, Supper

Ferry)-will increase expenses but will strengthen reason for advertisers to come in.

Climate

Macro-environmental PEST analysis

Political and legal environmento Right Connections Give KPC an advantageo Better Deals, Better Merchandising Opportunities

Economic environmento It’s Free, How to win advertisers is the economic challenge

Social and Cultural Envo Gives riding public an additional choice in free information & entertainment

Technological Envo Precise Target Hits (by concentrating in MRT/LRT lines) & advancement from current

publication business module (Purely ad revenue based income)

SWOT Analysis

IV. Market Segmentation

Description: Two Markets: ADVERTISER & READER Percent of Sales: 50% Target revenue of Inquirer- P50M vs. P100M of Inq Libre (Advertiser) What they Want: Meaningful/Abruptive/Relevant Content/ Visible/ Better Ad Rates, Packaging &

Bonuses (Advertiser) **note-most media buyers and junior marketing managers take MRT/LRT to work.

How they use product: Marketing Tool/Media Venue (Advertiser) Get News, Information & Entertainment (Reader)

Support requirements: Must be interesting, sought after, talked about for advertisers to take a second look at. Must have content which Inquirer Libre does not support.

How to reach them: Tri Media Visibility, Agency Client Presentations (Advertiser) Better positioning in MRT malls than Inq Libre (Reader)

Price sensitivity: In terms of advertisement, better value for advertisers than Inquirer Libre despite same circulation. (Advertiser)

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V. Alternative Marketing Strategies

Position Express as the Free Daily Jobs/Career Paper circulated in MRT, with Media Guide Inside Position Express as the Free Daily Gadgets Paper circulated in MRT, with Media Guide Inside Position Express as the Free Daily Urban Life Paper Circulated Paper., with Interactive Component. Position Express as the Free Daily Humor Publication circulated in MRT, with Media Guide inside. Position Express as the Great Mall Finds Paper, What to do once disembarking MRT.

Diverge Sections, Niche within MRT Station an opportunity. Copy successful publications formats and adapt own style.

VI. Selected Marketing Strategy

Position ‘Express’ as a Freely Circulated Paper exclusively within MRT/LRT anchored on the content of current broadsheet Manila Standard Today. It strength lies in its various promo coupon content and TV & Entertainment guides inside. Our transit market will be a good selling proposition to various advertising players.

PRODUCT (C/O JAR)

The product decisions should consider the products advantages and how they will they be leveraged. Product decisions should include

BRAND NAME POSITION SELLING POINT (to advertiser and reader in terms of content) MOCK UP (visual appeal)

PRICE- Advertising Rates

Strategy: Make Rate Card same as Inquirer Libre, but have EXPRESS/ MST Combo Packages Lowest Cost/Col Cm threshold at P150 In case of no advertising support, prepare to give rates as low as P50 per col/cm.

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DISTRIBUTION (Place)

Select stations with high traffic, relevant purchase points MRT Edsa North Edsa, Cubao, Ortigas, Makati Stations LRT 1: Edsa, Monumento MRT 2: Cubao, Katipunan

Instead of FREE in the morning Inquirer Libre strategy in location, paying customers from 10am-4pm get copies of Express, OR Strictly deploy 8AM, time when office workers (think advertisers, marketing professionals take MRT/LRT) still free but managed circulation. Big concern of advertisers.

PROMOTION

MEDIA TIE UPS TO GAIN PUBLICITY (TV, RC, MAGAZINES) Lots of Posters, Streamers within MRT

o Theres more reason to ride the MRT- Express House Ads Within Manila Standard Today Paper & Website

Devote standard 1.5 pages to media partners (worth approximately P150k to P200k daily in media barter deals/ roughly P2M a month)

Express needs to be more pro-active in promotions to create atmosphere of being bigger and better or strong alternative to Inquirer Libre

VII. Expenditures VS. Revenue Projections

VIII. Conclusion

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In Principle, The Express effort is a winner from all angles. The greatest challenge though is since Advertising will be the only source of revenue from this effort, the strategy and content must be in line with what clients & advertisers expect. Aside from this, we have to contend with the fact that there already exists a strong brand which has been successfully operating for three years. ( If you were to buy Bottled Green Iced Tea, which will you choose C2of URC or One of Zesto?) Our content must truly be groundbreaking to be talked about by the transit market (15-40 Broad C Male/Female) which will translate to winning advertisers share of monies. The trick in succeeding to position Express as the Free tabloid with Substance and relevance, not just another 12 page freely circulated tabloid to hit the MRT/LRT.

Marketing will play a vital role in Express success since it will do all tie ups to ensure ‘Express’ is properly promoted on select TV and Radio stations. Media Presence will give Express a slight advantage over Libre. (Ma Mon Luk and Tankationg (Jollibee) used to be very good friends. Tankationg invested a lot in advertising while Ma Mon Luk maintained his day top day operations, scoffed at advertising and its’ great products which sell, not expensive advertising. After 20 years, the disparity is clearly evident that advertising has been a big catalyst in Jollibee’s success. )

With the given projected operating expense of P3.3 million a month by Finance, Marketing has set Ad Sales Targets P4 million a month, roughly half of Inquirer Libre’s P8M monthly ad revenue.

An optimistic projection shows that if all variables go according to plan, KPC stands to earn an additional P900,000 a year.

Another projection shows that with our present handicap and combined with other intangibles (aptitude of sales teams and existing support staff), KPC might stand to loose more or less P6M annually.

Bottomline, Inquirer Libre has shown that being a freely circulated paper can earn around P100M a year and all things considered, a very good indication that Express as a business venture will succeed.

----------------------------------------------------------------------------------------------------------------------------------Additional Info: Revenue of Advertisers per listed publication titlesSource: Nielsen Ad Quest:Note: 2006 Jan-Aug 22 data only  Report Heading 2    Currency  P000's      

Jan-Aug 22, 2006  

    Grand Total

Y2003 Total

Y2004 Total

Y2005 Total

Y2006 * Total

Share 06

rank    

1PHIL. DAILY INQUIRER 9,370,230 2,399,800 2,711,405 2,701,203 1,557,822 33%

2 PHILIPPINE STAR 8,104,662 2,005,075 2,320,443 2,385,627 1,393,517 30%3 MANILA BULLETIN 4,791,773 1,210,864 1,355,430 1,378,850 846,630 18%4 BUSINESS WORLD 694,975 133,353 189,823 228,454 143,345 3%

5PEOPLE'S JOURNAL 580,030 154,277 179,415 161,282 85,056 2%

6 SUNSTAR CEBU 67,476 0 0 0 67,476 1%7 INQUIRER LIBRE 242,088 0 83,422 99,745 58,920 1%

8PILIPINO STAR NGAYON 181,756 0 53,352 71,040 57,363 1%

9 ABANTE 210,846 0 74,931 83,300 52,615 1%

10WALL ST. JOURNAL ASIA 3,036,562 1,078,469 1,042,036 866,492 49,565 1%

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11 MINDANAO TIMES 48,386 0 0 0 48,386 1%

12PEOPLE'S JOURNAL T. 319,567 93,437 106,193 76,375 43,562 1%

13THE MINDANAO DAILY MIRROR 41,615 0 0 0 41,615 1%

14 THE FREEMAN 143,470 31,958 32,072 46,984 32,456 1%

15MANILA STANDARD TODAY 78,170 0 0 47,846 30,323 1%

16COMPUTERWORLD PHIL. 268,546 89,560 84,118 67,291 27,578 1%

17 MANILA TIMES 209,862 70,635 60,360 51,654 27,212 1%18 CEBU DAILY NEWS 25,785 0 0 0 25,785 1%19 BULGAR 79,764 0 26,566 31,858 21,340 0%20 MALAYA 114,046 34,414 33,033 28,337 18,262 0%21 SUNSTAR DAVAO 14,842 0 0 0 14,842 0%22 ABANTE TONITE 58,857 0 24,965 20,217 13,675 0%23 TEMPO 36,173 0 10,944 13,133 12,095 0%

24SUNDAY INQUIRER NEWSPAPER 93,109 33,211 29,139 24,332 6,427 0%

25 BALITA 13,093 2,359 1,847 3,232 5,656 0%

26PASA'YO NEWSPLUS 1,532 0 0 0 1,532 0%

27PASA'YO PEOPLEPLUS 1,439 0 0 0 1,439 0%

28 FUN PAGE 8,518 2,587 2,653 2,647 631 0%

29CHINESE COMM'L. NEWS 53,732 13,072 20,519 20,141 0 0%

30 DAILY SUN 176 0 176 0 0 0%31 KABAYAN 17,548 8,741 6,472 2,335 0 0%

32MANILA BULLETIN SPECIAL ISSUE 1,113 1,113 0 0 0 0%

33MANILA STANDARD 109,745 55,907 46,641 7,197 0 0%

34METRO COMPUTER TIMES 9,993 9,551 442 0 0 0%

35 SINO-FIL DAILY 86,558 25,946 30,050 30,562 0 0%

36THE JUNIOR INQUIRER SPECIAL 5,437 2,306 2,634 498 0 0%

37 TODAY 111,407 53,171 51,209 7,027 0 0%

38UNITED DAILY NEWS 85,465 28,582 27,347 29,536 0 0%

39 WORLD NEWS 229,508 79,619 86,356 63,533 0 0%

  Grand Total29,547,85

5 7,618,007 8,693,995 8,550,727 4,685,127  

Note: to date, Nielsen does not tabulate Business Mirror ad revenue

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