PLAYBOY

THE ULTIMATE BRAND STORY

A GENIUS, LITERALLY.
Who would have ever thought a boy descendent of puritans, who would create one of the most controversial,
iconic, and interesting brands in the world, was genius, literally. They say too much information can be
dangerous, but with an IQ of 152, Hugh Heffner managed to balance the facts, risks, and rewards to create a
global enterprise with only a dream and $8,000.

Hefner had always displayed a creative side since his childhood, but it was not until his teenaged years that
he would reinvent himself into the man who would eventually create a fantasy world that readers could
integrate into their own lives. Graduating high school during the WW2 meant Hefner was off to enlist, but
due to his amazing typewriter skills he was assigned to a desk job that allowed his creative mind to wander
and set-up a much different life for the brand champion. He attended university and fast track graduated in
just two and a half years with a psychology degree, the man always had such a deep interest in the behaviour
of people. His obsessive personality and self-confidence were the making of a brand champion and would
guide him throughout his career.

There is always a turning point in an individual’s life, a moment in history where everything changes. In
1948, Hugh Hefner read “Sexual Behaviour in the Human Male”, and in response to the highly controversial
book that described the act of sex in its true nature, Hefner had finally discovered written words that
resonated the same feelings and opinions he and many others had. Over the next five years he would balance
the beginnings of a family and several different jobs, but continue with his love of cartooning and creative
aspirations. In 1953, the 26 year old decided to make his dream a reality and start his own magazine.

THE HOOK AND PAYOFF

The concept of the brand was to incorporate two elements into a male lifestyle magazine, which Hefner
referred to as ‘the hook and payoff’. The Hook: Sex and beautiful pictures of half-exposed women. The payoff:
a tasteful magazine full of both fascinating and informative content targeting at the sophisticated and
successful male in society as the payoff. Hefner had to determine his audience, distribution methods, specific
content, and the layout, all while investing a generous amount of time into physically creating the magazine.
Hugh understood the riskiness of his endeavor, but his passion and determination to make his dream a
reality prevailed.

Hefner was faced with a challenge, finding the perfect woman to draw reader’s attention to the first issue.
Fortunately he discovered that the rights to unpublished nude photos of Marilyn Monroe were conveniently
available. Before the magazine’s release, Hefner suddenly was forced to change the original name Stag Party
because of demands from the publication Stag Magazine. With a friend’s suggestion, Playboy was born and in
simply half an hour the iconic bunny logo was drawn. Hefner demanded a bowtie be added to the design to
give it a sense of class, just like the ideal Playboy man.

A GLOBAL ENTERPRISE IS BORN

In December 1953, the first issue of Playboy filled newsstands. 56,000 copies sold out in such a short time;
the market had never seen a magazine of its style that pushed the limits and coloured outside the lines of
society. After the first initial issues, Hefner wanted to remodel the magazine into an intellectual publication
that altered the way society viewed sex and embrace the freedom that self-gratification brought to
individuals. The 1950’s were a post-war era filled with lifestyles that celebrated a new found access to
disposable income and self-fulfillment, which provided Hefner the perfect position to launch and accelerate
the success of a controversial brand that many American men were in search for.
For many, Playboy was seen as inappropriate and hedonistic, on the other hand others saw its alternative
way of thinking that embraced a new lifestyle. The brand exploded not because of the magazine content or
the nude photos, but because it managed to fulfill a need in society rather than taking a product and trying to
create a perceived need within society.

By 1959, circulation had reached 1.1 million copies per month, far beyond the success of what Hefner had
ever dreamed. Playboy emerged as a publishing success because of its unique use of marketing techniques to
increase awareness, draw attention, develop the audience’s expectations, and generate loyalty. The
consistency of the magazines features such as playmate of the month, cartoons, and interviews that became
staples for the publication became a critical promotional technique that contributed to the success of the
brand. The magazine aimed to outline the types of music, food, and activities that readers should engage in to
live the life the typical Playboy lifestyle. The Playboy brand was relationship based from its initial grassroots,
aimed to appeal to the masses but allow each individual to experience it in their own unique way and
develop an emotional connection.

OVERCOMING CHALLENGES
The early success of the brand did not come without many challenges. Resistance from individuals, the
government, and society as a whole that viewed the magazine as offensive proved to be obstacles that both
Hefner and the brand strived to overcome. A major issue was the fact that the magazine contained nudity,
which at the time was considered obscene. The brand ran into problems with the U.S. postal service,
bookstores, and other distribution areas. Although this presented the company with challenges, the
limitations managed to fuel the success of the magazine and promote the Playboy brand. The brand became
an exceptional advertising platform as the majority of Playboy readers spent more overall than any other
magazine readers. By 1958, Playboy was no longer simply a lifestyle magazine but a sizeable opportunity for
advertisers to market their products.

A BRAND CHAMPION
As the 1950’s passed, the brand grew and Hugh Hefner became the ultimate brand champion as he began to
embody the exact lifestyle of the Playboy man he portrayed in his magazine. Hugh Hefner literally lived and
breathed the Playboy brand image, communicating a consistent message to consumers and delivering a
brand promise again and again. Consumers developed a strong sense of loyalty to the brand and eventually
became brand advocates and influencers. Hefner’s complete control and final say over everything that
involved the brand maintained a level of consistency that is unparalleled.

BRAND EXTENSIONS
The next stage of the brand’s lifecycle arrived in a variety of different brand extensions, defying the normal
business logic but proved successful. No matter the extension, Hefner’s only concern was that it reflected the
lifestyle the brand promised. The brand entered into merchandising, books, clubs, TV shows, modeling
agencies, all aimed to complete a total entertainment package. The purchase of the first Playboy Mansion
took the Playboy lifestyle to the next level, hosting parties and a new level self-indulgence that was in effect
the heart of the brand. Consumers were given so many different channels to experience the brand early on in
its lifecycle, effectively giving consumers more control and autonomy over their brand experience. The
combination of brand’s publicity and brand extensions kept the brand in spotlight and paved the way for an
explosive future.
THE SEXUAL REVOLUTION, THE PLAYBOY BRAND EXPLODES
The 1960’s were an age of sexual revolution, sweeping America and pushing the Playboy brand to new
heights and a new found wealth. With sales of $96 million by 1969, it was evident the brand was a force to be
reckoned with as the brand continued to establish successful extensions. The sky was the limit, literally.
Hefner extended the brand to include a foundation, casinos, numerous clubs, the Playboy Theater, and a
resort. He opened his 37-story headquarters in Chicago and even bought his own Playboy jet. The 1960’s
were a time of revolution, and also a period of time where Hefner spent much of his time recreating the
Playboy magazine to address the social, political, and cultural inequalities of the time.

A BRAND IN DECLINE
As Playboy entered the 1970’s, it was evident the brand was going to face challenges following such an
aggressive extension strategy. Many of the brand extensions seemed to suit Hefner’s personal interests
rather than those that truly fit the brand. Now that the brand addressed political and social issues,
consumers became confused since they had always associated the brand with sex. With such a broad and
now unfocused brand strategy, the question arose of how long could the brand continue to grow and thrive?
The macro environment played a key role in the development of the brand, as the brand began to symbolize
not just a lifestyle, but a cultural movement.

The 1970’s saw a new light in America, where conflict around the world was affecting everyone and
individuals were no longer living the good life but a day-to-day focus. The company went public in 1971,
while Playboy reached its peak with 7 million copies in circulation. Soon after, the macro environmental
forces altered the American people and dramatically affected the brands appeal. The emerging feminist
protests targeted Playboy and Hefner directly, causing many publicity issues and altering the perception of
the brand. Sales were plummeting and the unfocused nature of the brand was beginning to diminish its
overall success. Globalization is the only reason the brand survived throughout this decade, after expanded
internationally. Although expansion fueled short-term success, it failed to address the core problems of the
businesses structure and strategy.

A NEW CEO IN TOWN

The brand was in trouble, and in response Playboy made a desperate decision to reposition itself along
competitors such as Hustler and Penthouse. Evidently, it failed and Hefner brought the brand to a halt to
resort back to his original vision and focus. They eliminated failing brand extensions, closed resorts, and
essentially ‘trimmed down the fat’ to revive the struggling brand. By the time the 1980’s rolled around, a
playmate was murdered, Hugh Hefner suffered a stroke, his daughter was named CEO, and the brand was in
major decline. It was no help that STD’s, divorce rates, and AIDS was on the rise, which challenged the very
lifestyle the Playboy brand promoted. The increase in competitors and change in consumer’s interests and
activities greatly affected the brand. It can argued that Playboy survived because it was the pioneer of the
industry and its brand equity somehow managed to prevail. No company could possible sustain such
explosive growth the company experienced in the 1960’s.

Under the new control of Christie Hefner, she repositioned the brand to focus on its most profitable
endeavors and divest in areas that were simply draining resources. Merchandising became Playboy’s most
valuable asset in rebuilding brand equity. As the brand continued to experience contraction and focus on its
strengths, the brand found stability and success. The brand capitalized on the wide-spread expansion of
television to bring the value of its brand to a larger section of consumers.

A NEW GENERATION OF CONSUMERS, THE INTERNET EMERGES

In Hefner’s attempt to make the brand appeal to the masses, the magazine was trying to mean too many
things to too many individuals, which confused consumers. The launch of digital technology took the world
by surprise. The rise of the Internet completely revolutionized mainstream media and forced Playboy to
reengineer their strategies to not only use the web, but also somehow generate revenue. The Internet
generated a new efficient distribution channel, but created a new market faced with more competition than
ever. The company integrated Playboy Enterprises’ marketing efforts across all distribution channels and
practices to achieve economies of scale.

The new millennium brought about a new generation of customers and Hugh Hefner back in the limelight as
the most influential brand champion in history. Playboy TV was a success and licensing deals were also
generating exposure and revenue for the enterprise. The shift to digital and PPV television altered the
industry and their strategy. In 2006, Playboy used their reality show The Girls Next Door as an excellent
marketing tactic. Currently Playboy continues to face challenges

THE PLAYBOY BRAND

BRAND LOGO
A brand logo plays a key role in branding and creating an image in the consumers mind. Therefore, Playboy
like any other company has worked on its marketing communications effectively to ensure consumers
closely associate the brand logo with its values. The ultimate goal for Playboy when designing a brand logo
was to create something that would be memorable, meaningful and likable. The Playboy bunny was chosen
to represent the company as it represents both the idea of being frisky and playful as well as being seen as a
logo that is humorous with sexual connotation. It was a bold and distinctive choice, that embraced the
magazines differential approach among magazines such as the New Yorker or Esquire that utilize use men as
their symbols.

BLACK, WHITE, AND PLAYFUL ALL OVER

The playboy logo consists of a bunny representing the playful character of the magazine. Art Paul, the graphic
designer of the logo decided to use the bunny to ensure that the logo could represent a character that is
charming, amusing and a lively, all of which are values that reflect the brand. Hefner added the bowtie to give
the logo a sense of class and sophistication. The black and white color scheme of the logo help represent the
sound corporate grounds of the magazine as well as induce an imposing appearance.

Playboy has a strong brand name due to the various characteristics it possesses. The brand name is easy to
learn, distinctive, and remains consistent around the globe. The brand name and logo suggest that any
product that represents a product that is amusing and charming, the epitome of the Playboy lifestyle.
Consumers are able to form positive brand associations when exposed to the Playboy brand name or logo,
which highlights the strengths of the brand name and logo.

KEY ATTRIBUTES

PRICING STRATEGY
Playboy has adopted a price positioning strategy that is based on the premise that consumers who buy
Playboy products are looking for the best value of entertainment. Consumers associate a playboy product as
an item that can emulate a lifestyle. Consumers purchase playboy products to experience the fantasy lifestyle
portrayed by Hugh Hefner, and therefore the company can charge a premium price for the brands products
as they are seen the brand leader in the industry. As a brand pioneer, Playboy has used years of excellent
marketing strategies to position themselves as a brand leader within the adult entertainment industry.

COMMUNICATIONS
Playboy has done very well to ensure their marketing channels communicate what elements make up the
brand. The Playboy brand symbolizes the concept of being frisky and playful while embracing a humourous
approach to a sexual lifestyle. The company has been able to sustain such an image due to the consistency of
its brand message, logo, icons, and personalities. The consistency of Playboy’s message, logo, brand
personalities, and content inside magazines and television shows, have been key success factors in
communicating on a global scale the values and lifestyle the brand represents. The company has done well to
use the projection technique as well. Consumers relate playboy products to Hugh Hefner’s lifestyle and
project themselves to believe that a playboy product will allow them to experience a similar life style as they
aspire to become like the brand personality, Hugh Hefner.

DISTRIBUTION POLICIES
Playboy employs a mix of distribution policies. The company makes use of both direct channels and indirect
channels. Examples of direct channels include Playboy TV and its online website. This allows the company to
sell through personal contacts from the company to prospective customers by mail, phone, and other means
to ensure consumers have access to Playboy products. The company also uses indirect channels that use
third party intermediaries such as convenience stores like 7-Eleven to distribute magazines only. The use of
both distribution strategies allows Playboy to ensure that it can reach its target market easily and effectively.
It also ensures that that the brand name cannot be diluted by controlling what products are sold through
direct channels and which ones are sold through indirect channels.

COMPETITORS
Playboy magazine currently competes with other men’s magazines such as Esquire, Maxim, Men’s Health,
Rolling Stone, GQ, Men’s Journal, Hustler, and any other magazines geared towards men’s adult
entertainment. Many of these competitors provide magazine material that is geared towards men. However,
through constant and effective marketing, Playboy has been able to differentiate itself from its competitors.
Playboy magazine is seen as an industry leader. This is due to the fact that company represents a lifestyle and
brand that consumers want to emulate and therefore allows the company to build on the consumers wants to
be a Playboy like Hugh Hefner and differentiate itself from its competitors.

MORE THAN JUST A MAGAZINE

AN EXPLORATION OF THE PLAYBOY BRAND

THE PLAYBOY POSITION

The overall market position of Playboy is difficult to determine, because they compete in so many different
markets, product categories, points of sale and online mediums. While a single unified brand position is
elusive, they do have a brand image that revolves around the symbols, logo, and history of the company and
its founder. That image is globally known and understood by consumers, and becomes even clearer when
defined by Heffner as, “Frisky and Playful.”1

USAGE OCCASION
The playboy enterprise has spread its usage breadth from beyond pornography to nearly every controversial
occasion that can be tied to sexuality. Since its launch in the 1950’s, the divisive nature of Playboy’s past has
created associations both helpful and hindering over the course of its brand history. From sophistication, to
luxury, to humour, and crime. When a brand such as Playboy is credited for pioneering such a controversial
industry, the globally recognized logo can become an icon for all occasions similar in nature.

Take for example Exhibit A. In this usage occasion, the tattoo represents an openness to sexuality, and
willingness to embrace the Playboy lifestyle that the company has worked so hard to represent. The location
and subtlety of the tattoo symbolizes the sexual yet not blatantly distasteful personality that playboy
embodies. Exhibit B on the other hand is another popular usage occasion of the brand, but acts as an
example of an extension that brings the bunny into a negative light. The picture is of a Playboy branded
ecstasy tablet, a drug also tied strongly with sexuality. Links to illegal activity like this are unavoidable for the

1
http://en.wikipedia.org/wiki/Playboy
brand because of its appropriate similarities to the lifestyle Playboy has championed, representing on a
deeper level self-expression and freedom of choice.

The interesting aspect of the above examples is that they are both usage occasions invented by brand
evangelists, using the Playboy logo without any direct involvement of the company. This is a symptom of
having such high levels of brand awareness, and creates a large problem for a company who wants to control
its brand image and reputation. To observe usage occasions that speak more to Playboy’s ideal brand
projection, sponsorship activities and merchandise product lines can shed a much more accurate light.
Playboy has long since evolved from its very risky image of the 50’s after being diluted by much more vulgar
companies such as Hustler. The company has since developed more of a “boys-will-be-boys” attitude much
like beer ads such as Coors Light, and delivers their brand with relatively more sophistication and humour.
For example the company has created a video game, and offers a golf experience on top of its already famous
Playboy Mansion parties.

THE STRENGTH OF THE PLAYBOY BRAND

Strong brands establish credibility and trust even prior to the sales force even knocking on consumer’s
doors. Strong brands accelerate the sales cycle, and that’s just one of the many benefits that transforming
your brand into a strong, memorable, long-lasting image for consumers. For Playboy it was leveraging its
brand strength in order to refocus the many some years ago. Playboy‘s brand strength is very powerful from
a consumer and from a business point of view; the name and logo can be leveraged in a number of different
ways in order to create value. The particular strength with the Playboy brand is its relationship with selling
sex; consumers want to trust a brand that represents something that is long-lasting and not a means to an
end. By representing all aspects of “sexy” the playboy brand has been able to reach over many different
target segments and be recognized as a powerful brand. Consumers want to be associated with this brand
because it is has built a reputation as being “cool” and “exclusive” which is why its logo and name are so
easily transferable anywhere they go. The reason why Playboy has been built such strong brand strength in
its image is because they have been able to take the Playboy name and what it stands for and place it many
different markets. Lastly Playboy has, in the past leveraged its brand strength in order to re boost sales and
generate profits. Not to long ago the brand was at a standstill with magazine sales and the brand was
pursuing the option of having a playboy channel on TV. Although there was vast majority of different groups
that were against the idea Playboy leveraged its brand strength through its customers to building enough
demand to get the channel up and running. The reason that the brand strength was used to help Playboy get
this channel up and running was because they had a loyal group of followers who knew that the brand stood
for something special and theses consumers trusted that their favourite brand was going to turn anything it
touched into gold just like they were used to. It is these last points that really define the strength of a brand
in the consumer’s eyes.

BRAND FAVOURABILITY
Playboy has done a very successful job at constantly updating its products in order to increase brand
favourability through engagement and customer experiences. From our survey we realized that 100% of
people recognized the Playboy logo and first sight. (Exhibit C) How did that happen? How have they engaged
so man consumers in order to achieve these statistics? The answer lies in how Playboy has “tested” its
consumers over time by stretching its product over as many boundaries as it can. In the mid 1980’s Playboy
pursued a business venture that would allow them to have a Playboy channel on TV. This gave consumers a
new way to experience then brand from what they were usually used to. This unique experience is what
creates brand favourability and in a sense loyalty. Later on in Playboys life cycle they introduced other
products that would revitalize the excitement of the brand and get consumer wanting more once again. Some
projects over the years have been, online experience, all kinds of paraphernalia, Smartphone applications,
and even video games. On the other side of the spectrum Playboy has been able to create that unique
experience with customers by letting them experience the product first hand. Over the years Playboy has
shared the experience through the Playboy Mansion, Fashion shows, Tours, conventions, and special evens.
This allows consumers a chance to come and see the brand first hand and what it stands for making the
experience more vivid and clear. With playboy continuously trying to find ways to update its experience,
consumer bases continue to grow and change as well. This poses a challenge for Playboy, How do we reach
this new generation? Adaptability is a strong, favourable brands best friend and being able to leverage these
elements with a mix of unique experience is a recipe of success that Playboy has followed for many years and
may years to come.

BRAND CATAGORIZATION
Upon its original release in 1953, Playboy was marketed as the “handbook for the urban male” 2Playboy has
become strongly associated with sex in consumers’ minds, however the brand has positioned itself with a
classier, perhaps even socially acceptable approach to the taboo category in which it competes. Over time,
Playboy has been slowly moving out of the pornographic industry into a men’s lifestyle enterprise, offering
humour articles, luxury facilities, and of course scantily clad models. While Playboy will still be forever
recognized as a pornographic magazine, the category in which it competes is not adult entertainment,
including competitors GQ and Maxim. Especially because the majority of Playboy’s products don’t include
nude women, the brand has really entered into too many different industries to be labeled as explicitly porn.

BRAND EQUITY
With nearly 60 years of history and a presence in over 17 countries worldwide 3, the overwhelming brand
dominance of Playboy is undeniable. However along with leaders such as Crest and Kleenex, Playboy knows
that brand awareness does not necessarily translate into brand equity. While the bunny is an instantly
recognizable logo, the dissonance between Playboy’s ideal brand image and how the public perceives it
diminishes the value of the brand. The industry that Playboy once dominated is rapidly changing, and
without an integrated and synchronized strategy the company’s sporadic product offerings are reducing
brand equity. The sources of brand awareness for Playboy may lie in its image ambiguity, however the
sources of brand equity are harder to identify. Playboy’s magazine from 2001-2006 alone has lost newsstand
circulation 35%3 making their original magazine title and celebrity centerfold offerings not nearly as valuable
in consumers eyes. Its actual stock value fell from its 1999 peak of $35 to below $10 in recent years 4. This fall
in market value has been softened by Playboy’s outstanding consumer based brand equity.

With recognition and recall on lockdown, Playboy certainly has fantastic brand awareness in terms of the
consumer-based brand equity model. Where Playboy begins to lose equity is in brand image. Where in the
past, word-of-mouth among men was hugely beneficial for the company, now the brand associations are so
broad that the favourability of the conversations could change quickly from one product to another. The
uniqueness of the brand association for Playboy has lost its strength as the brand benefits change from one
product category to the next.

Where Playboy’s equity remains, and what Hugh Hefner has deliberately fought for is in its lifestyle. Places
like the Playboy Mansion and gambling club, and merchandise like Playboy bathrobes are staples to the
company’s product offering, and bring value to the brand’s equity. If one were to base Playboy’s brand equity
on recognition, its value would be one of the highest in the world. However, I think as time goes on and the
company continues to struggle, the brand’s actual equity is not as high as one would think.

THE PLAYBOY PROMISE

“Hefner promised men between the ages of 18 and 80 that Playboy would serve them a steady diet of
humour, sophistication and spice.”2 As anyone who knows of Hugh Hefner would tell you, the Playboy
promise goes much farther than what the company is offering. Although the brand targets such a broad range

2
http://news.bbc.co.uk/2/hi/business/6252436.stm
3
http://www.expectad.com/white_paper/Its_not_the_size_of_your_Brand_Equity_Expect_Advertising_Inc.pdf
4
Finance.yahoo.com
of men, “the Playboy life is that of an established man of experienced poise, comfortable in his leathery
wrinkles and white chest hair.”2 On every magazine cover is written “entertainment for men” and this covers
a broad array of categories. The website also boasts “the hottest women are here,” clearly advocating a much
more premium product than its competitors, and consistently delivering the most attractive women willing
to model. More than women, Playboy promises a no shame venue for men to be men, with an element of
class. A perfect example of the brand promise personified would be Hugh Hefner in the Playboy mansion
which has sophisticated drinks, comfortable house robes and furnishings, impressive architecture, and
beautiful women all in a laid back atmosphere.

ISSUES WITH THE BRAND

AN AGING BRAND CHAMPION

While Playboy has made itself famous as a massive global presence, the brand is well in its maturity and has
been struggling to stay afloat for years. Although a lot of this can be attributed to the rapidly evolving
industry it is a part of, the company is facing internal problems as well. Perhaps the most apparent problem
Playboy dealing with is the approaching death of their brand champion, Hugh Hefner. Hugh has done such an
outstanding job living and representing his Playboy brand’s lifestyle to the extent that it is hard to associate
one without the other. While his daughter Christie is formally the CEO and his son Cooper is rumoured to be
in succession training, it would be foolish to underestimate the amount of dedication and sacrifice Hugh has
contributed to the company in order to embody the Playboy lifestyle. Undoubtedly, the company will be
facing a lot struggle rebuilding the brand’s personality after its champion’s inevitable passing.

IMPROPER USAGE
Secondly, the company is facing an ongoing struggle with its brand’s usage on products not affiliated with the
company. As mentioned in the usage occasion section, a symptom of its massive global presence is that the
Playboy logo is being used for a plethora of different reasons, illegal and legal, helpful and hindering. The
brand image that the company is actively trying to maintain is being constantly diluted and confused in
consumers mind the more it is used. On top of that, the company legitimately offers over 700 points of sale 5,
further dividing the company’s personality. The company is riding the success of its brand history without
contributing valuable and congruent innovations, and is at risk of losing its unique product offering. Playboy
is facing the problem of brand dilution and inconsistency, and this is rapidly dissolving its value.

A NEED FOR INNOVATION

Lastly, Playboy’s magazine circulation numbers have halved since the 1970s, with the majority of its
revenues coming from other sources.2 Playboy is now faced with the challenge of developing a new product
that it can rely on. After being pushed out of the pornography market, competition in the men’s magazine
market is fierce, with Maxim being quoted as their main competitor.2 The level of innovation needed to bring
back Playboy to its former glory will surely be a large challenge in the years to come.

The magazine has evolved over the years to include features on actors, writers, economists, athletes,
politicians and more. It is not simply about sexuality now, but is attempting to carve an image of
thoughtfulness, athleticism, and humour, while still remaining playful and lighthearted. The Magazine sales
of Playboy are in decline, they now rank 53rd in the United States for total circulation at jut over 1.5 million
copies6, but the equity of the Playboy brand is undeniable, as it stands as one of the most recognizable brands
in entire world. The recent announcement that Playboy is shopping for new ownership has attracted
numerous companies, but one could recommend an acquisition by another entertainment giant that draws
the line between sexually appropriate and explicit, Virgin Media7. Speculation aside, the company that does

5 http://www.brandchannel.com/features_profile.asp?pr_id=125
6
http://en.wikipedia.org/wiki/List_of_magazines_by_circulation
7
http://www.forbes.com/2009/05/28/playboy-virgin-branson-markets-equity-takeover.html
purchase Playboy Enterprises will do so because the acquisition is “on-brand”, this revelation shortening the
list considerably. But in the end, the rights to such a powerful cultural symbol and aphrodisiac will not harm
a brand if managed properly.

Another issue for Playboy is the complex nodes built within the consumers headspace. The brand has been
around for decades, these personal opinions entrenched, and they will not change overnight. One issue
Playboy stands to correct moving forwards is dealing with excess “noise”, or anything that detracts from the
position that Playboy corporate invests to protect. Recently Playboy has opened upscale casinos, and
nightclubs, looking to expand in areas of adult entertainment outside of publishing content 8. The major
challenge again, is to ensure there is not conflicting ideals in positioning these clubs and casinos in relation to
the rest of the brands merchandise. Playboy casinos are classy and upscale; the magazine is professional,
while Playboy brand is also pasted on lighters and jewelry that sell for a dollar. This creates a conflict in the
consumer’s headspace about the position of Playboy. That being said, a lot of these sales objects are
counterfeit, that is a massive obstacle for such a recognizable brand, and one that is largely uncontrollable,
but Playboy will always have to deal with their brand being globally recognized and being used in situations
they do not authorize. What they can control is ensuring each and every time a customer walks into a club or
casino; they are delivered the “Playboy Experience”. And to their credit, the casinos are filled with expensive
décor, gorgeous women, and advertising opportunities for the brand. Every time someone enters a casino,
they should feel like they were granted the opportunity to visit the mansion for a night. The mystery and
allure associated with Heffner’s lifestyle is alluring, and being able to create this fantasy for customers will
drive repeat visits, or get people through the door in the first place.

THE FUTURE OF THE PLAYBOY BRAND

STRATEGIC RECCOMENDATIONS
Positioning can be protected or strengthened by laddering (how to deepen the meaning of the brand and tap
into core associations) and reacting (responding to competitive challenges) 9. Marketers can look at Maslow’s
hierarchy to determine what needs are applicable and how to deepen them with consumers, or assess the
consumers end needs through a means-end chain to determine valuable associations. What these concepts
offer are insight to the real value a consumer realizes. The superficial surface needs become transparent, and
deep relationships with a brand are formed. What’s ironic for Playboy is that these relationships, while they
exist, they will never be visible. Brand evangelists carry on its salience, but displaying the bunny logo is met
with ostracism, and the very people who support the brand are ashamed to display it. If Playboy is to be
successful moving forwards, these negative connotations need to be abolished.

LEVERAGE THE POWER OF A GLOBAL BRAND

To deal with competitors, companies look to eliminate points of difference and change them to points of
parity. From a branding perspective, you must establish valuable links with consumers to put up defenses
against this shift, and retain your points of difference as sources of competitive advantage. The war of
branding goes on internally, making it all the more difficult to determine success. But for Playboy to be
successful moving forwards, accessibility will have to be their competitive advantage. By offering the
Playboy channel on digital cable and satellite, the Playboy online site, Playboy magazine, and the recent
launch of a Playboy mobile division, accessibility is an understatement. Being able to access content anytime,
anywhere is crucial to maintaining the entertainment lead, and Playboy is making their content as available
as oxygen. They already have a brand; everyone knows what Playboy brings to the table. They need to take
the progress made in the past and leverage that moving forwards.

8
http://en.wikipedia.org/wiki/Playboy_Club
9
Keller, Strategic Brand Management
Rivalry comes from numerous sources, while in magazines specifically; Playboy competes with Lifestyle
magazines such as GQ, FHM, and Maxim. The adult entertainment industry evolved into a much different
environment than in the initial stages of Playboy. As the Playboy share price has fallen from a record high of
$35 in 1999, to just $6.22 currently10. And it has not traded above $20 since the turn of the century11. These
results do offer a cry for help, but the established brand does not need to reinvent the wheel. Moving
forwards, it is recommended Playboy alters their product/market focus and hones in on the very consumer
they have sought to exploit since their inception: Women.

INCREASE FOCUS ON WOMEN

Playboy’s licensing revenues are up 36% to $5.5mm in the last year 12, and their global retail business is now
worth a reported $800 million. What this means is that people are buying Playboy product, and not just
anyone, predominately women. For some, the Playboy tattoo on the lower back, or pink tank top covered in
rhinestones and bunnies is a smart fashion decision. One stands to mention said fashion choices are also
typically reserved for adult entertainers and rebellious teenagers. A global company cannot survive on
consumer groups who are judged in this light. An increase focus on women, and changing the image of the
Playboy brand will be crucial if they are to remain profitable in the future, as the brand needs to be brought
from the gutter of consumer’s minds to the mainstream.

Men love the Playboy brand for what it is, but realistically they are not going to be the ones purchasing the
merchandise. Not only licensing will be effective, but generating more interaction with the brand overall will
be critical to capturing a larger female demographic. Contests and promotions through the magazine and
website have been encouraging women to submit photos of themselves, and give them the opportunity to
launch modeling and entertainment careers through the exposure of publication. Moving forwards, Playboy
should hold a competition for women who feel sexy in their own skin. These women can be teachers,
coaches, accountants, and volunteers in their community who are making positive life choices and affecting
positive change (of course sexiness helps…). Acknowledge that in the past, superficial was popular, but now
you are looking to make a change towards the realistic. This shift will not be out of the question for the
magazine, as they are already moving towards the “girl next door” contests and reader submitted content,
this is just a new perspective on the meaning of beautiful, and perspective that will resonate with women.
One promotion such as this will not change their fortunes, but it is better than maintaining the status quo, as
society is no longer enthralled with soft-core pornographic magazines and websites. The shift towards an
edgy lifestyle magazine has already begun, and will need to continue to progress if Playboy seeks to exist
after the passing of Hugh Heffner.

10
http://www.nyse.com/listed/pla.html
11
http://www.forbes.com/2010/07/12/hugh-hefner-playboy-private-markets-equities-offer.html
12
http://www.licensing.biz/brand-profiles/175/Playboy
 EXHIBITS
Exhibit A

Exhibit B

Exhibit C
 REFERENCES
BRAND STORY

Gunelius, Susan. Building Brand Value the Playboy Way.

Basingstoke, Hampshire: Palgrave Macmillan, 2009. Print.

BRAND EXPLORATION

Covington, Richard. "Playboy." Playboy Enterprises. Web. 23 Mar. 2011.

<http://en.wikipedia.org/wiki/Playboy>.

"Hef's Private Plan For Playboy - Forbes.com." Information for the World's Business Leaders - Forbes.com.

Web. 26 Mar. 2011. <http://www.forbes.com/2010/07/12/hugh-hefner-playboy-private-markets-

equities-offer.html>.

Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity.

Upper Saddle River, NJ: Pearson/Prentice Hall, 2008. Print.

"List of Magazines by Circulation." Magazine Publications. Web. 24 Mar. 2011.

<http://en.wikipedia.org/wiki/List_of_magazines_by_circulation>.

"Listings Listings Directory Playboy Enterprises, Inc." NYSE, New York Stock Exchange. Web. 21 Mar. 2011.

<http://www.nyse.com/listed/pla.html>.

"Perfect Pair: Virgin And Playboy? - Forbes.com." Information for the World's Business Leaders - Forbes.com.

Web. 27 Mar. 2011. <http://www.forbes.com/2009/05/28/playboy-virgin-branson-markets-equity-

takeover.html>.

"Playboy | Brand Profile by Licensing.biz." Licensing Industry News and Analysis | Licensing.biz. Web. 28 Mar.

2011. <http://www.licensing.biz/brand-profiles/175/Playboy>.
"Playboy Club." Wikipedia, the Free Encyclopedia. Web. 25 Mar. 2011.

<http://en.wikipedia.org/wiki/Playboy_Club>.

"Playboy Enterprises." Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Web. 27 Mar. 2011.

<http://finance.yahoo.com/>.

Soteriou, Helen. "BBC NEWS | Business | Playboy Stretches the Bunny Brand." BBC News - Home. Web. 26

Mar. 2011. <http://news.bbc.co.uk/2/hi/business/6252436.stm>.