The Big Issue magazine was launched in 1991 by Gordon Roddick and John Bird in response to the problem of homelessness on the streets of London. The Big Issue aims to “help them to help themselves”. The partners offer homeless people the opportunity to earn a legitimate income by becoming a vendor and selling magazines on the street. The vendor buys the magazine for £1.25 and sells it for £2.50. Over twenty years later the organisation has helped thousands of vulnerable people to take control of their lives and currently works with around 2000 homeless people across the UK. The magazine has 63 distribution points nationwide. The Big Issue is an example of a successful social enterprise. The magazine has clear social benefits and a reputation for getting exciting guest editors and exclusive celebrity contributions which has vastly increased sales.
You should note that although the following questions are based on the case study above, you will need to make use of knowledge and understanding you have gained whilst studying the Course.
(a) Compare the objectives of The Big Issue, identified from the case study, with those of a public sector organisation.
(b)
(i) From the case study, identify the method of promotion that is used by The Big Issue.
(ii) Describe other methods of promotion that could be used by The Big Issue.
(c) Explain how external factors could affect the success of The Big Issue.
(d) The Big Issue could use rail to deliver its magazines to its distribution points nationwide.
(i) Identify another method of distribution.
(ii) State the advantages and disadvantages of this method.
(e) Describe the factors to be considered when setting the price for The Big Issue