Portfolio Strategy: Aggressive Risky business ventures in special publications & start-ups

What is an aggressive portfolio? Growth rate Market share Low High Low High

Why a new publication? Changing member or customer demographics Current publication(s) are in decline stage Growth is needed or wanted  New publications for existing customers  New markets for existing publications  New publications for new customers New discipline or subspecialty Recognized gap in the market or an underserved population

Existing publications are vulnerable unless they are constantly being updated Established publishers often take “baby steps” New companies sometimes take greater risk/create “disruptive technologies” Established publishers react slowly New publications are risky --- most fail

IdeaIdea screening Concept development & testing Marketing strategy Analysis Product development Market testing Launch The decision/development process for new products

ProductMarketLaunch AnalysisMarket The big mistake

Why do publications fail? Minimal or no research Ignore the research Overestimate the market Publication not well conceived Marketing problems Editorial problems Costs higher than planned

How many new journals are launched each year? Ebsco’s Bulletin of Serials Changes indicates there were ~400 journals in 2004 that were < 6 months old. Open access journals (  700 titles in 3/04  1,252 titles on 9/20/04 Ulrich’s Periodical Directory (  46 in 2004; 26 for 2005 New journals at commercial publishers for 2005:  Blackwell: 6  LWW: 2  Nature: 4  Sage: 4  Taylor & Francis: 11

Mimi Meredith Society of Environmental Toxicology and Chemistry Craig McChesney Endovascular Today

New journal launches: lessons and examples Alliance Communications Group, the publishing division of Allen Press, Inc. 1 October 2004

Experience Financial goal: double revenues in 5 years Strategic goal: create new publications for clinicians in high-prescribing specialties  Expand single title into series of journals  Take advantage of market trends Demand for topical review articles Industry support for clinical information Used structured approach Replicated phases for each launch BUT all market tested! Separate organization Ensured editors’ vision matched publisher’s vision Pre-test industry support Comfortable in market Product champion saw it through 6 of 8 review journals in existence today—75% 10%-40% market average for any new product introductions after 5 years

Overview Market-focused approach New publications for existing customers New markets for existing publications New publications for new customers

Where do the ideas come from? Internal forces  Strategic plan  Brainstorming sessions  Society leadership  Authors, editors External forces  Emerging technologies, new discoveries  New certification requirements  Building on popular existing product  Change in structure of market

How should we screen the idea? Capture on paper  4 P’s  Competitive profile Authorship Readership Industry support  Market size and composition Seek feedback Opinion leaders Contributors Readers Advertisers/industry Modify idea Product champion

Concept development Editor recruitment  Promote, network, interview  Editorial development plan  Contract negotiation Develop and test prototype  Focus groups  Short-answer surveys  Phone interviews

Establish marketing strategy Position publication in market  Identify distinctive competencies—2 or 3  Name, trademark, copyright—brand identity Prepare subscription and industry marketing plan  Goals  Final decisions on pricing  Promotion budget

Analysis Pro forma financial projections  Start-up and ongoing (5 years)  Project multiple revenue streams  Build in costs of editorial, production, marketing, staff, G&A Satisfy financial hurdles, strategic direction

Market testing Set go/no go thresholds  Time  Revenue Test direct mail  List research/testing  Descriptions of product  Different offers  Various price points Seek industry support  Editorial calendar  Inaugural issue

Product development Invite manuscripts Finalize design Selling subscriptions, ads Build web site Production schedule

Launch Key events timeline PR campaign  Industry and professional publications/web sites  Big splash at meeting  Seed the market (issue giveaways) Review first issue  Internal  External

New publications for existing customers AAN’s Continuum (CME) Endocrine Reviews (review v original research) Cardiosource (online, destination site) ASTM International (online only, no print) AUA Today (tabloid)

New markets for existing publications Stedman’s  medical transcriptionists Health Affairs  international Medical Practice Management: physicians  office managers

New publications for new customers NEJM  Hippocrates (IMs vs subspecialists)  Series of consumer newsletters Pediatric infectious disease newsletter  journal  adult infectious disease journal  dosage handbooks Nature  subspecialty science spinoffs  subspecialty clinical titles

Kaufman-Wills Group, LLC Alma J. Wills, Partner Cara S. Kaufman, Partner Kaufman-Wills Group, LLC 24 Aintree Road Baltimore, MD (ph) (fax) Selected clients  Am Acad Ped  Am Assoc Immunologists  Am Coll Cardiology  Am Coll Radiology  American Psychiatric Assoc  Am Soc Clin Oncology  ASPET  ASTRO  Intl Anesthesia Res Soc  NEJM  Proj Hope/Hlth Affairs Alma: former President, Periodicals Div, Williams & Wilkins Cara: former Publisher, Am Heart Assoc journals, The Lancet