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 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

    1. 1.
    2. 2.
    3. 3. THE STORY<br /><ul><li>Founded in 1953
    4. 4. First issue cover with Marilyn Monroe
    5. 5. One of the world’s most recognizable brands</li></ul>Long history of publishing notable novelists: Arthur C. Clarke,Ian Fleming,Margaret Atwood, Vladimir Nabokov<br />Features monthly interviews of notable public figures, such as artists, architects, directors, etc.<br />
    6. 6. THE PLAYBOY<br />
    7. 7. THE MANSION<br /><ul><li>21,987 square-feet
    8. 8. 5.3 acres
    9. 9. $50 million market value
    10. 10. Featured in numerous videos, shows, and movies
    11. 11. Lavish parties, charity events, and concerts</li></li></ul><li>TODAY<br />Three business lines:<br />
    12. 12. PRINT AND DIGITAL<br />Magazine<br /><ul><li>90% subscriptions
    13. 13. ¼ of revenue from advertising</li></ul>Domestic<br /><ul><li>9 million readers per month
    14. 14. $55 million</li></ul>International<br /><ul><li>27 licensed foreign editions
    15. 15. 9 million readers per month
    16. 16. $6.3 million</li></ul>Website<br /><ul><li>5 million unique visitors monthly
    17. 17. 45 million page views monthly
    18. 18. $37.4 million</li></li></ul><li>ENTERTAINMENT<br />Domestic TV<br /><ul><li>$50.5 million net revenue
    19. 19. Access in 65 million households</li></ul>International TV<br /><ul><li>$42.6 million net revenue
    20. 20. More than 100 countries</li></li></ul><li>LICENSING<br />$900 million in global retail sales <br />More than 150 countries and territories<br />$36.8 total net revenue<br />
    21. 21. NOW<br />External<br /><ul><li>Decrease of advertising in the magazine
    22. 22. 2007 – 460 pages
    23. 23. 2008 – 428 pages
    24. 24. 2009 – 285 pages
    25. 25. Economy downturn
    26. 26. Free adult content readily available online</li></li></ul><li>NOW<br />Internal<br /><ul><li>Tasteless, almost pornographic website unlike the image set out by the magazine
    27. 27. Indiscriminate licensing has led to over-saturation of branded products and cheapening of the brand</li></li></ul><li>CRUDE SITE<br />
    28. 28. CRUDE LINKS<br />
    29. 29. LAME LICENSES<br />
    30. 30. GRANDPA HUGH<br />84 years old<br />Divorced previously, and currently filed for divorce<br />4 children: born 1952, 1955, 1990, 1991<br />Stroke at 59 (1985)<br />
    31. 31. SOLUTIONS<br />Back to the future<br /><ul><li>Get back to the brand
    32. 32. Do what Playboy was known for</li></ul>Diversify business<br /><ul><li>Get into new industries since magazines are dying
    33. 33. such as gentleman’s clubs, nightclubs, and adult only resorts</li></ul>Sell unprofitable parts<br /><ul><li>Magazine and entertainment businesses losing money after operating costs</li></li></ul><li>THE VISION<br />“humour, sophistication, and spice”<br />~ Hugh Hefner, 1953<br />
    34. 34. MANAGE THE BRAND<br />Playboy is known as a classy magazine with health tips, dating advice, romantic stories<br />Need to ensure all businesses and ventures supportthe Playboy brand<br />Remove pornographic material<br />Revisit all licensing agreements<br />
    35. 35. THE NEXT PLAYBOY<br />
    36. 36. DIVIDE AND CONQUER<br />Expand the core business<br /><ul><li>Move into the tablet age
    37. 37. Develop a classy web site
    38. 38. Segment markets (high-end, pornographic, trendy, etc.)</li></ul>Partner with complimentary brands<br /><ul><li>Louis Vuitton, Ferrari, Romeo and Juliet, Remy Martin, Rolex, Formula 1, etc.</li></ul>Appeal to celebrities<br />
    39. 39. IN THE NEWS<br />June 29, 2010 – Playboy to transition to “brand management” company<br />July 12, 2010 – Hefner offers to take <br />Playboy private <br /><ul><li>Hefner owns 70% of voting shares and 28% of non-voting stock
    40. 40. Penthouse also making big to takeover Playboy</li></ul>July 20, 2010 – Playboy launches new SFW website TheSmokingJacket.com<br />

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