zu-muCottamKugel

ManoshMartinez

Niche magazines have enormous potential

Information from general magazines can be found anywheretrends

Hollywood Japanese Fashion StoresChildren’s Cartoons and ToysTelevisionAnimeSushiIron ChefStudy Abroad

japan

A glimpse at how Japan is shaping technology, art, business

and more in Americazu-mu

Informative Entertaining

Mass

Niche

NYLONzu-mu

contentfood

innovationdaily life

architecture

technologybusiness

gaming

fashion

delivery

rich online content only

subscription - all 4 issues and online

single newsstand issue

$39$9$19

Yuppies and Yuppie Families

why?New, up-to-date topics every issue

First hand look at a culture of reinvention

Rich, detailed photos and great storytelling

Feeds into their worldly curiosity

Aggregated look into an innovative culture

How can we get them to pick up

the first copy of zu-mu?

promotion

Concept Development

Prototype Production

Q1 Niche DMA Distribution

Test Marketing / Refinement

Launch Q1 Zu-Mu and Website

April 2009

May2009

June 2009

July2009

Aug2009

Sept2009

Oct2009

Nov2009

Dec 2009

Jan2010

Feb2010

Mar2010

Business PlanDevelopment / Staff up

Prototype Topic Research

Press / Media Kits / Sampling

Launch Q2

Q1 Topic Research

zu-mu launch plan

Traditional Magazine Model:

30% Subscriptions*

20% Newstand Sales*

40% Advertising*

The Mu-Zu Model:35% Subscriptions

25% Newstand Sales

30% Advertising

10% Trend Consulting

* Magazine Publisher’s of America & several Conde Nast Rate Cards

Total = 15,000,000 (via Simmons)

Total customers x Conversion x Assigned Probability

New Customers

15,000,000 2% 10% 30,00015,000,000 3% 40% 180,00015,000,000 4% 30% 180,000

15,000,000 5% 20% 150,000

Total 540,000

The Target Pool

Circulation 250,000

Medium SpendingPrinting 4x/year $4,500,000.00

Print R&D $500,000.00

Website $2,000,000.00

Production Equipment $150,000.00

Tokyo Bureau $925,000.00

Salaries / Freelancers $1,000,000.00

Research & Development $500,000.00

Test Marketing $500,000.00

Consulting Salaries $200,000.00

SF Office + Staff $250,000.00

Expenses/Travel $100,000.00

Total Spending $10,625,000.00

The Costs

Total UnitsTrend Arm $1,062,500

Newstand $2,125,000 141,667 copies*

Subscriptions $3,187,500 81,731 subscriptions

Advertising $4,250,000.00

To Break Even... * 33,750/edition

YEAR 1

Total Circulation x % x Price TOTAL

250,000 40% $15 $1,500,000

Newsstand Revenue

Total Circulation x % x Price TOTAL

250,000 60% $39 $5,850,000

Subscription Revenue

Total Customer Revenue

Customer SalesYEAR 2

$7,350,000

Total Viewers / 1000 x CPM x 365 TOTAL

100,000 100 $20 x 365 $730,000

Online Ad Revenue

Print Ad RevenueTotal Ads x Price x # of editions TOTAL - 20%Comm.

40 pp.* $30,000 4 $3,600,000 $2,880,000

Ad SalesYEAR 2

* Wired Magazine sells 40pp. as of 12/08

$3,610,000Total Ad Revenue

GOAL (10% of business): $1,298,000

Trend ConsultingYEAR 2

ROI YEAR TWO10,960,000 - $10,625,000

$10,625,000x 100 = 3%

11,988,000 - $10,625,000

$10,625,000x 100 = 13%

ROI YEAR TWO + TREND CONSULTING

questions?