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Playboy Strategy
 

Playboy Strategy

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A look at Playboy\'s business ventures through the lens of strategic management. Interestingly, that shortly after this presentation, Playboy had implemented two of our recommendations. Members ...

A look at Playboy\'s business ventures through the lens of strategic management. Interestingly, that shortly after this presentation, Playboy had implemented two of our recommendations. Members include: Miroslav Jeliaskoff, Lester Lam, Keith Loo, Rafael Rosenzuaig

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  • Sold out in weeks (53,991 copies)Cover price is was 50 cents – copies were worth $5000 in 2002

Playboy Strategy Playboy Strategy Presentation Transcript

  • THE STORY
    • Founded in 1953
    • First issue cover with Marilyn Monroe
    • One of the world’s most recognizable brands
    Long history of publishing notable novelists: Arthur C. Clarke,Ian Fleming,Margaret Atwood, Vladimir Nabokov
    Features monthly interviews of notable public figures, such as artists, architects, directors, etc.
  • THE PLAYBOY
  • THE MANSION
    • 21,987 square-feet
    • 5.3 acres
    • $50 million market value
    • Featured in numerous videos, shows, and movies
    • Lavish parties, charity events, and concerts
  • TODAY
    Three business lines:
  • PRINT AND DIGITAL
    Magazine
    • 90% subscriptions
    • ¼ of revenue from advertising
    Domestic
    • 9 million readers per month
    • $55 million
    International
    • 27 licensed foreign editions
    • 9 million readers per month
    • $6.3 million
    Website
    • 5 million unique visitors monthly
    • 45 million page views monthly
    • $37.4 million
  • ENTERTAINMENT
    Domestic TV
    • $50.5 million net revenue
    • Access in 65 million households
    International TV
    • $42.6 million net revenue
    • More than 100 countries
  • LICENSING
    $900 million in global retail sales
    More than 150 countries and territories
    $36.8 total net revenue
  • NOW
    External
    • Decrease of advertising in the magazine
    • 2007 – 460 pages
    • 2008 – 428 pages
    • 2009 – 285 pages
    • Economy downturn
    • Free adult content readily available online
  • NOW
    Internal
    • Tasteless, almost pornographic website unlike the image set out by the magazine
    • Indiscriminate licensing has led to over-saturation of branded products and cheapening of the brand
  • CRUDE SITE
  • CRUDE LINKS
  • LAME LICENSES
  • GRANDPA HUGH
    84 years old
    Divorced previously, and currently filed for divorce
    4 children: born 1952, 1955, 1990, 1991
    Stroke at 59 (1985)
  • SOLUTIONS
    Back to the future
    • Get back to the brand
    • Do what Playboy was known for
    Diversify business
    • Get into new industries since magazines are dying
    • such as gentleman’s clubs, nightclubs, and adult only resorts
    Sell unprofitable parts
    • Magazine and entertainment businesses losing money after operating costs
  • THE VISION
    “humour, sophistication, and spice”
    ~ Hugh Hefner, 1953
  • MANAGE THE BRAND
    Playboy is known as a classy magazine with health tips, dating advice, romantic stories
    Need to ensure all businesses and ventures supportthe Playboy brand
    Remove pornographic material
    Revisit all licensing agreements
  • THE NEXT PLAYBOY
  • DIVIDE AND CONQUER
    Expand the core business
    • Move into the tablet age
    • Develop a classy web site
    • Segment markets (high-end, pornographic, trendy, etc.)
    Partner with complimentary brands
    • Louis Vuitton, Ferrari, Romeo and Juliet, Remy Martin, Rolex, Formula 1, etc.
    Appeal to celebrities
  • IN THE NEWS
    June 29, 2010 – Playboy to transition to “brand management” company
    July 12, 2010 – Hefner offers to take
    Playboy private
    • Hefner owns 70% of voting shares and 28% of non-voting stock
    • Penthouse also making big to takeover Playboy
    July 20, 2010 – Playboy launches new SFW website TheSmokingJacket.com