VCW for Surf Portugal Magazine: Addressing Declining Sales
VCW with Portuguese surfing in formulating a strategy to reduce sales and increase profitability
This case-study demonstrates how the VCW came up with solutions to address the declining sales of the magazine Surf Portugal.
This project focuses on developing Surf Academia's potential with a €1.6 million budget, utilizing the Value Creation Wheel (VCW) framework.
Overview:
Surf Portugal, a long-standing surfing magazine, faced declining sales and revenue due to the economic crisis and the shift to online media. The team used the VCW framework to develop strategies to increase profitability while leveraging the company's existing capabilities.
Application and Process:
The process began with a background analysis, understanding Surf Portugal's history and current challenges. The team then generated ideas and filters through interviews with industry stakeholders. The CEO ranked the filters, prioritizing brand fit and awareness. Through the Value Creation Funnel (VCF), the team narrowed down potential solutions to two: creating an art cover magazine and improving the website. Financial forecasts and sensitivity analyses were conducted to assess the viability of these solutions.
Key Takeaways:
Art Cover Magazine: Develop a premium, bilingual magazine with four issues per year, focusing on storytelling and targeting the core Portuguese market and international surfing enthusiasts.
Website Improvements: Enhance the website's user experience, design, and content, focusing on competitions, product reviews, and promoting the art cover magazine.
Filter Ranking: Prioritize brand fit and awareness as key criteria for evaluating potential solutions.
Value Creation Funnel: Effectively narrow down a large number of ideas to the most feasible and impactful solutions.
Financial Forecasting: Use financial forecasts and sensitivity analyses to assess the viability of proposed solutions.
Advertorials: Implement advertorials on the webpage, to increase revenue.
Conclusion:
The VCW framework effectively guided Surf Portugal in developing a strategy to address its declining sales and increase profitability. The proposed solutions, focusing on a premium magazine and website improvements, align with the company's brand and leverage its existing capabilities.