3. Current Situation
Competitive Companies:
Vivid Entertainment Group, Penthouse Media Group, Inc.
Competitive Brands:
GQ, Huslter, Panthouse.
Purchase Customers:
Mostly young men from 18 to 54 who live in the cities.
Environmental Factors:
Consumers can get what they want including sexual content on the Internet easily and free;
People are desensitized to pictures with sexual content (and this is what Playboy used to attract its
readers in the past.)because the variety of that type of content is rich these days.
4. Current Situation
Because of the declining trend in paper magazine industry, more aggressive competitors, and
irreversible environmental changes, the circulation of Playboy magazine has decreased to 800,000 in
2015 from its peak number 5,600,000 in 1975.
http://www.cnbc.com/2015/12/11/playboy-magazine-by-the-numbers.html
Circulation of Playboy Magazine from 1975 to 2015
5. Current Situation
All companies started up by pornographic paper magazines are facing tough time. Especially for
Playboy, the financial situation is much worse.
Income Statement of Playboy Compared to Playboy’s Top Competitors
http://www.wikinvest.com/stock/Playboy_Enterprises_(PLA)/Data/Key_Metrics
6. SWOT Analysis Strength
Long history(since 1953);
Highly recognized brand;
Good market knowledge.
Weakness
Expensive;
Stereotype about the brand;
Doesn’t have a unique value compared to
other men’s magazines
Opportunity
Online market and products;
Social network;
SO Strategies
With high brand recognition and good
market knowledge, Playboy should make
new products online and propaganda
through social media(Facebook,
Instagram).
WO Strategies
Utilize online resources;
Shift focus from paper magazines to online
media vehicles to engage customers; Keep
paper magazines as a propaganda tool and
move towards digital content and online
offers.
Threat
Intense competition;
Declining trend for paper
magazine;
Reduced commercial value for
ST Strategies
Being a big player, it is possible for
Playboy to leverage all its resources to
integrate business as a whole.
Invest much on its website in a short time.
WT Strategies
Remove nude pictures;
Rethink what value should be given to target
new customers and revitalize the brand;
Reposition Playboy, target new customer
7. Targeting
Male millennials who age between 18-30, at least graduated
from high school, living in cities.
● They are considered as young generation who want to enjoy
fun life but also pay close attention to current events, the
global outlook, as well as sophisticated world view.
● They actively use social media platforms to explore and
engage with brands they like and consume.
● Male millennials are naturally interested in some topics and
willing to participate in some special activities. For example,
most young male customers are interested in sports, cars and
games.
8. Targeting
1. Millennials are the largest population demographic in the U.S. and commanding $1.3 trillion
in consumer spending.
2. As they will enter the next stage of life, millennials’ expenditure on entertainment will also
continue to grow.
3. Millennials are active audience, which means they are loyal to brands that are aligned with
their own values.
4. The impact of their choices can be amplified by their use of multiple screens and social
medias.
9. Positioning
In the Past In the Future
Positioning
Statement
Men's Entertainment Magazine The Life & Style Coach for Young Men
Key Element Nude images
Attractive but not overexposed images. Life &
Style recommendations. Interesting and meaningful
articles,etc.
The reason people
buy our magazine
The sexual images
We will guide audience enjoy a fun life and trigger
them to think deeply about meaningful topics.
Touch points Paper magazine
A membership including paper magazine, digital
magazine, app, online store, party, etc.
12. Objectives for social media platforms
Instagram
- Followers:10M.
- Posts: post the best picture
everyday. Average likes for each
post: 3,0000 - 5,0000.
Facebook
- The average likesand shares
of each news feeds exceed
5,000.
- The average commentsof
each news feeds exceed
1000.
- Followers: 50M
Twitter
- Tweets:100k
- Followers:20M
- Likes:5M
Online Store
Playboy should cover every aspect that our target
audience interests, the updated categories are
clothing & grooming, electronics, entertainment
(music, movies and games) and sports & outdoors.
Playboy’s online store will cooperate with other
brands and become a platform or special edition
We intend to achieve a monthly sales volume of
100,000 units, and attain total revenue of at least 0.5
billion by 2017
Official Website
Monthly unique visitors will
increase to 40 millions
Snapchat
● Post in official stories
everyday.
13. Budgeting
Category Detail Budget
Labor cost
We need to hire about 10 more people, including social
media specialists, senior editors, website designers,
project manager for online store, etc.
$100,000,000
Online Advertising
Youtube, Netflix, Hulu and Amazon Prime Instant Video $80,000000
ABC, NBC, CBS $450,000
Outdoor Advertising Poster, Bulletin, Billboard $500,000
Sales Promotion Booth with products display $ 10,000
Co-branding
Sponsorship
Bar, Blackheart Premium Alcohol $82,000
Public Relation Event Jimmy Kimmel Live $150,000
Social Media
Engagement
Instagram, Facebook, Twitter, Snapchat $100,000
Spokesman Justin Timberlake $1,500,000
Total $3,872,000
14. Marketing Communication Tool
● Outdoor and Online Advertising
- 15s video ads put on mainstream video websites and TV
● Sales Promotion
● Co-branding Sponsorship
- Cooperate with Blackheart Premium Spiced Rum and sponsor events in
the bars
● Public Relation Events
- Invite Justin Timberlake on Jimmy Kimmel Live Show
● Social Media Engagement
15. Online Advertising- 15s Video Ad
In 2016, 78m people which accounts for 92.4% of the
Millennial are digital video viewers.
Top Four Vehicles
Millennial Like Best Using
Streaming Services
16. TV Advertising- 15s Video Ad
According to Nielsen, US adults ages 18 to 24 watched
more than 2.5 hours of traditional TV per day. Those in
the 25 to 34 age group watched nearly 3.5 hours per day.
17. Outdoor Advertising- Mix of Traditional Vehicles
Mix of Billboards, Posters and Bulletins;
Clear message on Playboy’s revitalization and renovation.
Metropolitan Areas & Hot Tourist Spots
Like NY, LA, Las Vegas, Miami, Boston,
especially during travel and Sports season.
18. Sales Promotion
Playboy aims to get Millennial familiar with the products and offerings. Make them know
our products will satisfy their needs.
- Playboy brand is extremely recognizable
- Its services and products are vague to customers. The disconnection of brand and
product with consumers can lead to sales lose.
1. Interaction activities on lifestyle marketing level
- Playmates running booth.
1. Introduce one-stop lifestyle solution to dig customers’
potentials for continually using our integrated services.
- Randomly select 10,000 active subscribers for having one-
month Membership free trial.
19. Sales Promotion- Playmates Running the Booth
- Put booth at the venues like gaming expo, sporting
events, racing events to target Millennial.
- Display all the Playboy products and give incentives
to make purchases.
20. Co-branding Sponsorship
Playboy wants to engage Millennial and make them use our streaming services.
- Sponsor events in the bars geographically near colleges or areas where have a
large population of our target customers.
- Teamed up with Blackheart Premium Spiced Rum with QR code on bottles.
- Download Playboy App and registration with incentive of $15 per person. And
100 people will be randomly selected to have the 2016 March issue.
22. Social Media Engagement
we want to create buzz and topics for them to share with others.
We will create contents that entertain the audience and to engage them going
viral.
24. Sales Promotion
Membership card -
“You Know You Want It”
Message - Lead you to an exclusive world of Playboy
Membership Features
● Easy online store purchase with the membership ID
● Free three days hipping with all the online purchases
● Magazine subscription with discounts
● Pre-booking services in specific bars or clubs
● Early access to Playboy events
25. Co-sponsorship Events
“Party Like A Real Playboy”
Message:
● introduce the fun, young, classy
vibe of the new Playboy
Co-sponsorship with
● trendy restaurants
● nightclubs
● liquor brands
● cigar brands
26. Public Relations Events
“Life and Style Coach for Young Men”
Message- introduce our new identity
for our readers
● Classy
● Young
● Gentlemen
27. Social Media
● 45% of Snapchat users are
from 18-24
● 71% of Snapchat users are
under 34 years old
Message
● Connect with the young
generation and millennial
● Create a social buzz
● Expand our brand awareness
bun
“Get your Snapchat photo with the Playboy bunny.”
28. Objective Evaluation Criteria Weight
Instagram Followers: 10M =10 M, 100%;
>10 M, each 1M get extra 10%;
<10 M, each 1M lose 10%
20%
Facebook Followers: 50M =50M, 100%;
>50M, each 1M get extra 2%;
<50M, each 1M lose 2%
20%
Twitter Followers:20M =20M, 100%;
>20M, each 1M get extra 5%;
<20M, each 1M lose 5%
20%
Online store Attain total revenue of at least 0.5
billion by 2017
=0.5 Billion, 100%;
> 0.5 Billion, each 10M get extra 2%;
< 0.5 Billion, each 10M lose 2%
15%
Official Website Monthly unique visitors will increase
to 40 millions
=40M, 100%;
>40M, each 1M get extra 2.5%;
<40M, each 1M lose 2.5%
20%
Budget Total: $3,872,000 <=$3,872,000, 100%;
>$3,872,000, each 500,000 lose 20% 5%
Evaluation
29. Evaluation Formula
Total Score = Instagram Score + Facebook Score + Twitter Score + Online Store Score +
Official Website Score + Budget Score
If Total Score >= 100%: Campaign achievements are successful completion and even more than expected;
If 90% <= Total Score < 100%: Campaign almost achieves the goal;
If 80% <= Total Score <90%: Campaign has some achievements;
If 60% <= Total Score < 80%: Campaign is not bad but needs to be modified;
If Total Score < 60%: Campaign does not achievesgoals and perhaps should be stopped and redesigned. Or
objectives of this campaign were set too high.
