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    Brand Analysis Brand Analysis Document Transcript

    • TINTIN Brand Analysis of Playboy MagazineBranding Term Project Hult international Business School MBA 2011 San Francisco Module C Hitesh Malhotra
    • Contents Topic Page1. Industry and Company Analysis………………………………………………….. 31.1 Category Description, Size and Growth ………………………........... 41.2 Company Analysis ………………....................................................... 62. Customer Profile and Framework ………………………………………………… 72.1 Targeted Consumer …………………………………………………………….. 8,92.2 Target‟s goal by consuming thebrand…………………………………………………… 102.3 Valued Consumers‟ Behavior ……………………………………. 113. Competitor Analysis…………………………………………………………………. 12,133.1 Product Attributes and Customer Perception…………………………………….. 133.2 Distinctive Competency and DifferentialAdvantage…………………………………….. 143.3 Competition with other Categories………………………………………………… 154. Positioning ……………………………………………………………………………….. 174.1 Brand Positioning………………………………………………………………… 175. Brand Mix andCommunication……………………………………………………………. 155.1 Advertising………………………………………………………………………….. 18-19-205.2 Social Media…………………………………………………………………………. 216. How the company lives it Brand…………………………………………………….. 236.1 The Ultimate Brand Custodian- Hugh Hefner 23 2
    • 1. Industry and Company Analysis1 BackgroundPlayboy is an American adult magazine targeted primarily at men. It features photographs of nudewomen as well as journalism and fiction. Founded in Chicago in 1953, with a seed capital of $1000by Hugh Hefner and his associates, Playboy has grown into Playboy Enterprises, Inc. that extends toall formats of media. 2Playboy is ranked at#54 at all time top 100 US brands of United States. Withmassive globalization, special nation-specific versions of Playboy are published worldwide.“„3Playboy features monthly interviews of notable public figures, such as artists, architects,economists, composers, conductors, film directors, journalists, novelists, playwrights, religious figures,politicians, athletes and race car drivers” .4 Category DescriptionMen pornographic magazines or adult magazines are magazines that feature contents of a sexualnature. Mainly targeted towards adult men globally, mens adult magazines contain photographs ofattractive nude women, and sometimes sexual activities. Some magazines are general in theircontent, while others may be more specific and focus on a particular pornographic niche, part of theanatomy, or model characteristics. Other than Playboy, well-known adult magazinesinclude Penthouse and Hustler. 5“Magazines may also carry articles on topics including cars, humor,science, computers, culture and politics. Pornographic magazines are often sold in conveniencestores, newsagents and petrol stations”. 1 http://en.wikipedia.org/wiki/Playboy 2 http://www.rankingthebrands.com/The-Brand-Rankings.aspx?rankingID=179&year=253 3 http://en.wikipedia.org/wiki/Playboy 4 http://en.wikipedia.org/wiki/Pornographic_magazine 5 http://en.wikipedia.org/wiki/Pornographic_magazine 3
    • Growth6According to Adams Media Research, Forrester Research and Veronis Suhler CommunicationsIndustry Report, IVD, adult magazine industry is pegged at approximately $1 Billion. If we look at thegrowth factor since 1940 to 2005, it had been a phenomenal incline in the business of adult magazinetill the year 2005. 7Overall the sale of US adult magazines contributes 5.92% to overall publicationsales revenue.However, post 2005; we saw an internet revolution taking over print media due to its nature of freeand quick accessibility across the globe. The customers had open access to internet pornographyand thus there was a paradigm shift from tradition media to social media. 8Let‟s have a look at howthe revenue declined over 2005-2006 below to justify the assumptions- 6 http://www.forbes.com/2001/05/25/0524porn.html 7 http://www.nacsonline.com/NACS/Magazine/PastIssues/2010/August2010/Pages/Feature11.aspx 8 http://internet-filter-review.toptenreviews.com/internet-pornography-statistics.html 4
    • 2006 and 2005 Pornography United States Industry Revenue Statistics 2006 2005 (Billions) (Billions)Video Sales & Rentals $3.62 $4.28Internet $2.84 $2.50Cable / PPV / In-Room / Mobile / Phone Sex $2.00 $2.00Exotic Dance Clubs $2.19 $1.34Novelties $1.73 $1.50Magazines $.95 $1.00 $13.33 $12.62US porn revenue exceeds the combined revenues of ABC, CBS, and NBC.9 9 Edelman, Benjamin. Journal of Economic Perspectives, Winter2009, Vol. 23 Issue 1, p209-220, 12p, 4 Charts, 1 Graph, 1 Map; DOI: 10.1257/jep.23.1.209 5
    • Company10 Market Share: Playboy is a brand that epitomizes US adult entertainment for various products. Ranging from magazines that mix modern trends with racy photography to the iconic, smoking-jacket- clad founder who decided to live the lifestyle his magazine portrayed. The company began riding on the founder‟s vision of an „Alpha Male‟ through its magazine, and has since expanded into nearly following platform: Playboy TV has subscription-based television channels available in 70 countries on over 27 networks. 3,500 hours of original content are created each year. .Playboy is one of the nations largest hardcore pornography producers. Playboy Radio features content ranges from relationship advice to interviews with playmates, the ladies who appear in Playboys products Playboy Wireless offers content that is downloadable to mobile devices, like cell phones and PDAs. Content includes videos, pictures, games, and ringtones, all with the Playboy theme. Playboy magazine is a general-interest magazine, targeted to men. It is a market leader in men‟s magazine as well as adult magazines. 11Following is the market share of Playboy Magazine. The magazine was once the keystone of the companys business, but due to the deteriorating publishing industry, the company has increased its focus on the digital realm with its various websites. Its free site Playboy.com offers the same content as its magazine and its subscription based sites are essentially adult websites with exhaustive offerings. 10 http://www.wikinvest.com/stock/Playboy_Enterprises_(PLA) 11 http://internet-filter-review.toptenreviews.com/internet-pornography-statistics.html 6
    • Licensing: Playboy‟s rabbit head logo is one of the most popular symbols in the world. It signifies sex,sophistication and glamorous living associated with Playboy. Their licensing division essentially sellsthe use of the Playboy name, logo, and image, to other companies.12 Scope: The paradigm shift from Paper-to-Pixel has greatly affected Playboy Inc. As depicted in thefigure on page7, the print publishing industry has seen a major drop in circulation. Internethas replaced newspapers, pamphlets, and magazines, as the primary source for news and information.The revenues of the organization and its print products have greatly suffered due to this phenomenon.Today, the people feel that videos provide a higher sexual stimulus over pictures. With the uprising ofseveral websites that play „tubes‟, consumers no longer have to subscribe to „pay per use‟ services.Sites like AskMen.com offer the journalism of Playboy at no cost, and thousands of small, ad-fundedsites offer free adult content without the inconvenience of subscriptions. However, having said that,‟Playboy Online‟ is a major driver of the Playboy brand name even if the revenues are negligible, thewebsite and its content push Playboys sexy and sophisticated image in such a way that anythingbearing the logo would be associated with the website. While magazine revenues might stagnate asthey appear to have done with the website, both will remain very important to generating revenue fromother segments of the company, especially in the high-margin licensing business. So basicallymagazines and website facilitate the promotion of their licensing business.If we look at the 13financials over last 4 years, we see a steep decline in both-the stock prices as wellas income. If we can base future earning based on past incomes, things looks slightly shaky for thePlayboy Enterprises. 12 http://www.wikinvest.com/stock/Playboy_Enterprises_(PLA) 13 http://www.google.com/finance?q=NYSE:PLA&fstype=ii 7
    • 14 Looking at these factors, Playboy Enterprises said its founder offered to buy the remaining shares ofthe company to make it private. In March 2011, Hugh Hefner had taken Playboy Enterprises private at$6.15 per share, a deal value of $177 million. Currently, Hefner owns 69.5% of Playboys Class A stockand 27.7% of its Class B shares. 2. Customer Profile and Framework Targeted Consumer To understand the behavior and demography of the targeted consumer, we will analyze some 15charts below 14 http://www.suite101.com/content/playboy-wants-to-go-private-a260427 Pictures:http://www.google.com/search?q=playboy+products&hl=en&rlz=1C1SNNT_enUS417US417&nord=1&site=&prmd=iv ns&source=lnms&tbm=isch&ei=b4XdTY65Moa6sAOWl72lBw&sa=X&oi=mode_link&ct=mode&cd=2&sqi=2&ved=0CCQQ_AUo AQ&biw=1366&bih=667 15 http://internet-filter-review.toptenreviews.com/internet-pornography-statistics.html 8
    • Regional Analysis on the basis of pornography revenueThe charts give us some insights into target customer profiling. Contrary to the popular belief that people inUnited States are biggest customers of pornography, we notice that the biggest patron of pornography belongto Asian countries (China, South Korea and Japan) and contribute nearly 80% to the overall revenue. Most ofthe consumers are male, between the age group of 18yrs to 24 yrs and 25yrs to 34yrs.What‟s interesting towatch is 14% female audience for a brand targeted for male.16 However, during early days, Playboy was symbolized with liberal thinking and politics while living a life ofself gratification at the same time. Hence they had begun their journey by targeting certain people in AmericanSociety known as „Baby Boomers‟. It comprised of young and rebellious 18 yr olds who were immersed in thedisco era, drugs and sex and alcohol.Subsequently, the brand had tarnished their image due to infamous drugscandals. 16 Build Brand the Playboy Way by Susan Gunelius,Paperback,Penguin 1999 9
    • As the 1970‟s passed, Playboy brand grew and moved focus from business to celebrity. They ventured intonew geographies with the help of diversification. They opened 23 clubs, resorts, hotels, and casinos withnearly 1 million members worldwide. This clearly helped them loop in people in the similar age group withaffluent lifestyle and higher disposable income.Target’s Goal by Consuming the BrandPlayboy primarily attracts attention of all men from the world. Talking from consumer‟s point of view it providestwo basic stimuli –1. Sexual Gratification through nude female pictures and steamy articles. Playboy signs up the mostattractive and famous celebrities for their cover shoot. Some of the famous people that have appeared in thePlayboy are Cindy Crawford, Naomi Campbell, Sharon Stone, Bo Derek, and Katarina Witt. They publisharticles about men‟s lifestyles and other intimate topics. It is a human trait to connect to various people talkingabout topics of their interests.2. Aspirational Value since Playboy projects a party culture with elements of showmanship and grandeur.Consumers want to impersonate the Playboy culture that synergizes women and fun. It stems on the mostcommon behavioral virtue of being famous and impressionable. Today, the brand epitomizes as „a voiceagainst mediocrity‟, uniqueness and sexuality.To validate our claims, I had researched through some 17reviews on Amazon.com from Playboy customersand the following ones fit most appropriately here. “What can I say? I have subscribed to Playboy for over 40 years. Every subject imaginable is likely to be inthe magazine eventually. The women are more beautiful than ever, and the interviews are always interesting.No magazine covers more topics than Playboy with insight and intelligence. I particularly enjoy the Playboyadvisor and 20 questions”18 “I like this magazine because it offers almost everything a man may want in a tasteful, entertaining andinformative magazine. Of course, the accent is on gorgeous women who are tastefully exposed but notcompletely because it is always nice to have a little bit left to the imagination. The models are exceptionalwomen issue after issue and the magazine delivers again and again. There are questions with celebritypersons and editorials; the humoristic part is also captivating. There is even political commentary. However,the most memorable part are the top quality photos throughout the content and after I turned from averageinto a great lover thanks to the bestseller scientifically guaranteed male multiple orgasms and ultimate sex, Iam even confident enough to hang out with girls out of my usual league. After all, it is nice to watch hot girls atthe pages but it is also good to do something to hang out with such. Overall, it offers a lot to young and oldermen with various interests and demands, and I am sure that you will enjoy your subscription. They also addspicy bonuses so dont be very surprised if you get also a DVD or something. Enjoy” 17 http://www.amazon.com/Playboy-1-year-auto-renewal/product-reviews/B001UJICAK by Edward L. Diamond (west palm beach, fl United States) 18 http://www.amazon.com/Playboy-1-year-auto-renewal/product-reviews/B001UJICAK by B. Michael 10
    • Valued Customers’ Behavior Customer Behavior blends elements from psychological and sociological perspective In an attempts to understand the buyer decision making process for Playboy, I made use of , 19Black Box Model for our product, the most valuable customers are the one who have been subscriber of Playboy Magazines for a period of more than 5 years. They offer maximum revenue and word of mouth branding for new customer acquisition. ENVIRONMENTAL FACTORS BUYERS BLACK BOX EnvironmentalMarketing Stimuli Buyer Characteristics Decision Process Stimuli Attitudes:Rebellious,Fun Loving, Information search-WordProduct: Magazine Economic: Students, Free to express of mouth, legacy.Price : S83 for 1 young working Motivation: To be upmarket,lavish Alternative evaluation:yr professionals(Limite and grande,impressionable Low, gets little out ofPlace : d disposable Personality:Charismatic,Confident competitors in terms ofUS,UK,Asia, income) and Bold similar content.Promotion: Technological- Lifestyle: Upper Middle Class, good Purchase Decision: HighDiscounts on Internet Porn Etc. school, drive cars,club- Loyalty factor and brandyearly Cultural: Open, goer,adventu:re sports. associationsubscribtions,free Liberal Knowledge: Internet Savvy, Naive Post-purchase: pamperedDVD, Access to Demographic:18-34 about current affairs, good with by the org. with freePlayboy online gaming and gadgets. online and DVDs., club memberships 19 http://en.wikipedia.org/wiki/Consumer_behaviour#Black_box_model 11
    • 3. Competitive Analysis Playboy vs. Competitors Talking from Playboy Magazine‟s perspective, we identify the following Men‟s Adult Magazines as top competitors: - Hustler, Penthouse and Maxim. The following20 212223chart compares all three with respect to product attributes and customer perceptions. Organisation Playboy Enterprise Larry Flynt Enterprise Penthouse Dennis Publishing Hustler,Barely Legal,Asian Maxim,Blenders,Insid Magazines Playboy Fever,Hustlers XXX Penthouse EdgeFirst Copy Published in 1953 1974 1965 1974 Price(Yearly in $) 83 41.95 29.95 14.97 Total-23 countries,Majorly 45 Countries Majorly 30 Countries,major Distribution US,China,Korea,Europe USA US,Australia,Germany,UK market-UK Annual Sale(Millions) 4.27 0.5 2 2.5 Playmate,Perfumes,Appar Strip Clubs,Videos,Clothing,Sex PenthouseStore, Other Products els,Clubs etc Toys,internet,Mobile App.,Casino Internet,DVDs,Celebs 31 other titles Editorials on latest Articles on sports, technology, cars, drinks, sex, work, health, Pornographic Pornographic Pictures,blatantly games and sports . Monthly money and pictures,nude violent and misogynistic themes like features like Celebrity Nudes, fashion.Semi Nude Content celebs,lifestyle articles incest,abortions etc Vanities,Sex advice Celebrities Upper- Middle Class,Flamboyant,Baby Students,Young- Boomers.Students,Young Sophisticated male,mostly Middle Age Target Customers Professionals Populist,Working Class Society professionals,upmarket Professionals Merchandise,Celebrity Harcore Pornography,Casino,Wide Celebrity Pictures,OnlineDistinctive Competency Nude Pictures Array of Publications Videos Lifestyle Articles Looking at factors like annual sale, content type and target customers, its appropriate to say that the true competitor of Playboy Magazines is Penthouse. 20 http://en.wikipedia.org/wiki/Hustler 21 http://www.thenewmagazinecity.com/maxim.html 22 http://en.wikipedia.org/wiki/Penthouse_(magazine) 23 http://internet-filter-review.toptenreviews.com/internet-pornography-statistics.html 12
    • Distinctive Competency and Differential Advantage In today‟s world of social media, customer reviews develop a brand perception. For Playboy and Penthouse respectively; I had researched through customer reviews on Amazon.comMagazine Total Reviews Average Star Ratings Excerpts Playboy Magazine October 2008 is 132 pages long and features Playmate Kelly Carrington on front. Overall the articles are good reading and two out of three of the pictorials are good. The articles like the Adderall Effect and how it is misused in college to achieve better grade is excellent. OthersPlayboy 60 articles like Everything We Need to Know We Learned in College, Shoot- What can I say but this book is for those of us who go solo a lot and need material to fuel our fire with. IF you read this book and think that all these events actually take place you live in lala land, but that is ok as long as itPenthouse 60 gets you aroused! Below are the reviews from Epinions.com (24Epinions.com is a general consumer review site that was established in 1999. Epinions was acquired by Shopping.com in 2003, which in turn was acquired by EBay in 2005)Magazine Total Reviews Average Star Ratings Excerpts We took Playboy for two years, and its over now. We enjoyed reading it most of the time, but weve never seen such business practices from aPlayboy 90 magazine in all our lives. Theres no doubt that Penthouse Magazine has been a successful enterprise, as this magazine has been competing with the likes of Playboy for years. Its a lot like Mr. Hefners publication, in that it incorporates articles and jokes,Penthouse 30 along with what we all want from such a magazine As we observe out of a sample population of 240 customers across different geographies, a rating of 4 out of 5 is given to both the magazines. That gives us some insight about customer‟s perception towards both brands- somewhat similar. This is despite the fact that Playboy is distributed in 23 countries vs. distribution of Penthouse in 45.Lets see what makes Playboy different from Penthouse. I have listed 2 factors that make Playboy distinct:- 1.Licensing: Among the products not produced by Playboy that feature the Playboy logo, name, or other associations, are clothing lines, lifestyle and entertainment products, perfumes, a nightclub and casino, and a mansion resort in Macao. While licensing isnt the largest part of the Playboy business, it is the most profitable and has grown tremendously over the past three years. 24 http://en.wikipedia.org/wiki/Epinions 13
    • 2. Celebrities: Playboy has revolutionized the way popular celebrities market themselves and define a personalbrand. 25Many celebrities (singers, actresses, models, etc.) have posed for Playboy over the years. This list isonly a small portion of those who have posed. Some of them are:Film: Marilyn Monroe (December 1953) (Never actually posed for Playboy itself), Jayne Mansfield (February1955) Mara Corday (October 1958), Ursula Anderson (June 1965), Kim Basinger (February 1983), DrewBarrymore (January 1995), Denise Richards (December 2004).Music: Latoya Jackson (March 1989/Nov 1991), Nancy Sinatra (May 1995), Samantha Fox (October 1996)Television: Women of Baywatch (June 1998), Claudia Christian (October 1999)Sports: Torrie Wilson (May 2003 and March 2004, Amy Acuff (September 2004), Amanda Beard (July 2007)Differential Advantage: Playboy provides a cluster of benefits that customers value and believe they cannotobtain anywhere else. Brand Product Subscription Distinctive Competence $83-$53.05 Discount Celebrities Pictures, Articles. Vouchers for Playboy Playboy Magazine Voucher=$29.95 Merchandise Reflects the changing role of men in American society, featuring articles on fashion, famous personalities, the arts, Penthouse Magazine $30 politics, the media, etc. Nude Celebs. Edited for young, intelligent, professional men. Maxim Digital Maxim Magazine $14.97 concentrates on sports, sex, work, health, money and fashion. Hustler Magazine $41.95 Twisted and uncensored photos displaying female genitalia.Playboy offers 3 major differential advantages for the customers:-a. Reputation/Trust – Playboy has the loyalty of customers since inception. Some of their oldest subscribersare in the age group of 56-67 yrs. People have trust that they will get a hold of a new copy every month withoutany delay. 25 http://en.wikipedia.org/wiki/Playboy#Celebrities 14
    • b. Adaptability- The unique licensing enables people to display a statement of sophistication and sexiness byusing the Playboy „Bunny‟ logo products. This customer psyche helps playboy stay ahead of their competitors byintroducing newer merchandise from time to time.c. Price – Playboy subscription come with outstanding discount vouchers that make it cheaper than its nearestrivals.Competition with other Categories Playboy clearly competes with 3 major categories of products:- a) Internet – These days with the increase of internet users, more and more pornographic sites are coming into picture. Most of them are offering free access to tubes – a short review of major pornographic videos. A staggering 40 million Americans are regular visitors to porn sites and contribute nearly 60% of worldwide $4.9 Billion revenue to porn industry.26 A study of university networks by Palisades Systems found searches for child pornography at 230 colleges nationwide. The research revealed that 42% of all searches on file-to-file sharing systems involved child or adult pornography. The study also found that 73% of movie searches were for pornography, 24% percent of image searches were for child pornography, and only 3% of the searches did not involve pornography or copyrighted materials. The online porn inventory comprises of 420 million porn pages. Sites Distinctive Competency spankwire.com Free DVD downloads I phone and Blackberry pornhub.com version redtube.com Huge library, quick downloads webcams,sex blogs, long youporn.com videos b) Home Videos – 27Adult video sales and rentals have increased in general over the years. In the United States 405 million videos were sold or rented in 1992. That number rose to 957 million in 2006.28Hollywood currently releases 11,000 adult movies per year – more than 20 times the mainstream movie production. 39 million homes receive the adult channels in scrambled form, while the number of children with potential exposure to such images is about 29 million. 26 http://www.blazinggrace.org/cms/bg/pornstats 27 http://internet-filter-review.toptenreviews.com/internet-pornography-statistics.html 28 http://www.blazinggrace.org/cms/bg/pornstats 15
    • 29 U.S. Adult Video Sales and RentalsSince Playboy enterprises has its own version of Online and DVD’s, its safe to assume that they compete amongsttheir own categories at times.C) Strip Clubs – 30A strip club is an adult entertainment venue in which striptease or other erotic or exoticdance is regularly performed. Strip clubs typically adopt a nightclub or bar style, but can also adopttheater or cabaret-style. In USA, the advent of strip clubs is dated way back after World War 2.31 As of 2006,the size of the U.S. strip club industry was estimated to be US$2.19 billion, generating 19% of the total grossrevenue in legal adult entertainment. There are 3 prime categories of Strip ClubsFull nude – The male or female performer is fully nude by the end of the performance.Topless – The female performers upper body is exposed but the genital area remains covered during aperformance.Bikini – The female performers breasts and genital area remains covered. Or the males genital area remainscovered.In 2005, an estimated 300,000 women worked as strippers in the U.S., across 3,000 clubs. Since then, thenumber of clubs in the U.S. has grown to approximately 4,000 by 2010.Strip Clubs provide an avenue to get a more surreal experience as compared to the one they get from an adultmagazine or a porn video, since if offers an opportunity of physical interaction via „Lap Dances‟. Moreover theavailability of alcoholic drinks and popular music at the venue help people live a truly erotic moment. 29 http://internet-filter-review.toptenreviews.com/internet-pornography-statistics.html 30 http://en.wikipedia.org/wiki/Strip_club 31 http://internet-filter-review.toptenreviews.com/internet-pornography-statistics.html 16
    • 4. PositioningBrand PositioningPlayboy’s Positioning Statement: Nothing comes closer to the hearts and minds of men.The complication with this kind of positioning is that this statement comprises of so many different things, all withdifferent characters and appeal. Contrary to the major brands such as Nike or Amazon, that have a very clearand distinct positioning, Playboy‟s dilemma is to be sexy as well as classy, entertaining but informative,exclusive but popular.After careful evaluation of different categories of magazines for men, we find 3 major classifications –a) The business and news magazines like Outlook, Business Week or Time. These magazines own events and financial analysis but hardly any adult entertainment. Moreover the lifestyle trends depicted are outdated.b) Lifestyle Magazines like GQ, Esquire, Sports Illustrated that own literature and high achievement. They talk about contexts like cars, adventure sports, workouts, and diets etc that appeal to the modern male. They are almost too literate, and way down the list in popularity for entertainment.c) Pure Skin Magazines like Hustler, Asian Babes etc that own female gynecology and purely depict raunchy pictures with no editorial content.Playboy ideally positions itself very smartly between category B and C with traits of category A (if the news is aglobal phenomena like 9/11 etc.)This helps them maintain their distinctive competency by inculcating richPornographic content and classy editorial articles about men‟s lifestyle, satirical jokes and a blogospherecolumn. They incorporates all the elements for mature men who have already arrived at some sense, have theirown personal style, are comfortable with their achievements but are still reaching for more pleasurableexperiences. Playboy 17
    • 5. Brand Mix and CommunicationAdvertisingCurrently being a privately owned enterprise – Playboy, it was hard to ascertain the kind of budgets allocated tothe marketing mix. However, I checked for the biggest 32revenue generator for Playboy and tried to follow theiractivities concentrated towards that segment.We observe that the 2 biggest revenue generators are – internet and home DVD‟s. Playboy primarily advertisesfor DVD‟s on their33 website and 34YouTube channel. On a closer look at their YouTube channel, we can findsmall snippets of their upcoming DVD‟s. Through their website, they promote subscription to their online paidcontent-Playboy TV. The contents of both look up market and attractive. 32 http://sparxoo.com/2010/07/20/playboys-internet-strategy/ 33 http://www.playboy.com/ 34 http://www.youtube.com/user/playboytelevision?blend=1&ob=5 18
    • Playboy’s YouTube ChannelPlayboy.com Home Page 19
    • Looking at the effectiveness of their YouTube Channel,we find close to 12000 subscribers and 16 millionviews.The stats confirm the success of this initiative towards marketing DVD‟s.However, in their website most of the content is paid content. It doesn‟t follow the popular web publishingformat i.e. give free prime content and then sell advertising space. The point to ponder is that the website stillworks on web 1.0 format that enables no user interactivity or engagement in today‟s world of Social Media.Due to government restrictions, Playboy wasn‟t allowed to advertise on TV or banners in certain countries likeUSA. However, in places like Germany, Holland etc, where they are permitted to use that space(as seenbelow),the ads look creative and meaningful in content. 20
    • A point to remember is that Playboy franchises a vast range of merchandise like perfumes, apparels, shoes,watches etc.The advertisement of these products do serve as a surrogate for Playboy products and promotethe content indirectly.Social MediaPlayboy has a phenomenal fan following on Facebook – close to 5 million. However its presence in Twitter is farmore humble with a mere 205,000 followers. Although it is hard to determine its effect on sales, it does give usan additional insight on the customer demographics and behavior. Let us see how. 21
    • Interestingly, the huge difference in numbers can be attributed to the following35 data chartClearly, we can list 3 factors for Playboy more popular on Facebook- majority in lower age group- 18yrs-25 yrsvs. Twitter‟s 26-24 yrs; High School base of 21% vs. 7% of Twitter and lastly $40% Facebookers follow a brandvs. 25% Tweeters. 35 http://gigaom.com/2010/12/20/facebook-vs-twitter-an-infographic/ 22
    • 6. How the company lives it brandMr. Hugh HefnerPlayboy‟s founder Mr. Hugh Hefner is considered as one of the best brand custodians in the world. Here‟s a trueexample of the extravagance portrayed through the founder. In the 70‟s when Playboy brand was mushrooming,and had just achieved its record monthly sales, Mr, Hugh Hefner who had once agonized over every detail of themagazine, brand and business, withdrew from day to day operations. His focus moved from business tocelebrity. He purchased the most expensive property in Beverly Hills and named it Playboy Mansion. Thisproperty has been a venue for numerous, larger than life celebrity private parties hosted by different set of„Playmates‟ over the last 40 years. Not only did he purchase a huge villa, but he extended his parties to the skywith the purchase of a private jet „Big Bunny‟ .The state-of-the-art DC9 jet would have the most beautiful lookingwomen dressed as „Bunnies‟ to cater to the rich and famous guests. He also started a „Playboy after Dark‟Television Series to live the Playboy fantasy in every possible way. Playboy Enterprise was the first player to start a trend and has been an inspiration to numerous other players, and will continue to do so in future. Playboy is just not about nudity, parties or lifestyle. It’s a depiction of every man’s hidden fantasy and aspiration.Truly, Playboy indeed is a power brand of 20th Century------------------End------------------ 23