1. Cottam
Kugel
Manosh
Martinez zu-mu

3. trends
Information from general
magazines can be found anywhere
Niche magazines have enormous potential

4. Hollywood
Japanese Fashion Stores
japan
Children’s Cartoons and Toys
Television
Anime
Sushi
Iron Chef
Study Abroad

5. A glimpse at how Japan
is shaping technology, art, business
and more in America
zu-mu

6. Mass
zu-mu
Informative Entertaining
NYLON
Niche

7. technology
business
architecture
content
gaming
food
daily life
innovation
fashion

9. delivery

14. $39 subscription - all 4 issues and online
$9 single newsstand issue
$19 rich online content only

15. Yuppies and Yuppie Families

16. First hand look at a culture of reinvention
why?
Rich, detailed photos and great storytelling
New, up-to-date topics every issue
Aggregated look into an innovative culture
Feeds into their worldly curiosity

17. zu-mu
How can we get them to pick up
the first copy of ?

18. promotion

19. zu-mu
April
2009
May
2009
June
2009
July
2009
Aug
2009
Sept
2009
launch plan
Oct
2009
Nov
2009
Dec
2009
Jan
2010
Feb
2010
Mar
2010
Business Plan
Development / Staff up
Concept Development
Prototype Topic Research Q1 Topic Research
Prototype Production
Test Marketing / Refinement
Press / Media Kits /
Sampling
Launch Q1 Zu-Mu and
Website
Q1 Niche DMA
Distribution
Launch Q2

20. Traditional Magazine Model:
30% Subscriptions*
20% Newstand Sales*
40% Advertising*
* Magazine Publisher’s of America & several Conde Nast Rate Cards
The Mu-Zu Model:
35% Subscriptions
25% Newstand Sales
30% Advertising
10% Trend Consulting

21. The Target Pool
Total = 15,000,000 (via Simmons)
Total customers x Conversion x Assigned New Customers
Probability
15,000,000 2% 10% 30,000
15,000,000 3% 40% 180,000
15,000,000 4% 30% 180,000
15,000,000 5% 20% 150,000
Total 540,000
Circulation 250,000

22. The Costs
Medium Spending
Printing 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

23. YEAR 1
To Break Even... * 33,750/edition
Total Units
Trend Arm $1,062,500
Newstand $2,125,000 141,667 copies*
Subscriptions $3,187,500 81,731 subscriptions
Advertising $4,250,000.00

24. YEAR 2 Customer Sales
Newsstand Revenue
Total Circulation x% x Price TOTAL
250,000 40% $15 $1,500,000
Subscription Revenue
Total Circulation x% x Price TOTAL
250,000 60% $39 $5,850,000
Total Customer Revenue $7,350,000

25. YEAR 2 Ad Sales
Online Ad Revenue
Total Viewers / 1000 x CPM x 365 TOTAL
100,000 100 $20 x 365 $730,000
* Wired Magazine sells 40pp. as of 12/08
Print Ad Revenue
Total Ads x Price x # of editions TOTAL - 20%Comm.
40 pp.* $30,000 4 $3,600,000 $2,880,000
Total Ad Revenue $3,610,000

26. YEAR 2 Trend Consulting
GOAL (10% of business): $1,298,000

27. ROI YEAR TWO
10,960,000 - $10,625,000
$10,625,000
x 100 = 3%
ROI YEAR TWO + TREND CONSULTING
11,988,000 - $10,625,000
$10,625,000
x 100 = 13%

28. questions?