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University Parent, Inc. Fesehaye Abrhaley, Michelle Dorenkamp, Kara Grinnell, Ryan Roth and Sarah Schupp April 21, 2004.

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Presentation on theme: "University Parent, Inc. Fesehaye Abrhaley, Michelle Dorenkamp, Kara Grinnell, Ryan Roth and Sarah Schupp April 21, 2004."— Presentation transcript:

1 University Parent, Inc. Fesehaye Abrhaley, Michelle Dorenkamp, Kara Grinnell, Ryan Roth and Sarah Schupp April 21, 2004

2 Product/Service Description UPI sells website and magazine advertising to businesses interested in marketing to parents of college students UPI produces 3 guides per year for each location Guide provides comprehensive information: Details on university and surrounding community Parenting tips Website, www.universityparent.comwww.universityparent.com

3 Opportunity  $70 million dollar market opportunity  95% of college parents want to be more informed  No publication addresses their needs/wants  35 businesses have already purchased advertising in the 2nd Parent’s Guide to Boulder 100% of Fall ‘03 advertisers purchased an ad in the Summer ‘04 guide

4 Need  Connecting with students  Parents stay informed  Money Savings/Ability to plan ahead  Convenience/Portability Parents  Building image  Generating revenue Businesses

5 Target Market  Parents of… College students/prospective students  Parents who… Visit campus Are involved  Advertisers trying to reach… Middle to upper-middle class adults Who are typically college educated With means to send their kids to college

6 Test Market Competition  No DIRECT competition  Indirect competition Colorado Daily Daily Camera Boulder Magazine Ralphie’s Guide  Competition will vary at every campus

7 Competitive Advantage  Specialized niche No one currently reaches  Proven track record Relationship with 35 advertisers  Distribution Agreements with university, local businesses

8 Key Marketing Strategies  Parents Distribution: campus, hotels, & restaurants WebLogs  Advertisers Direct Mail Relationship Building Awards

9 Risks ProblemSolution Duplication by competitorsEstablish brand, quick national roll-out Universities uncooperativeContact universities for permission before expanding, Internships Insufficient ad salesProve ROI, diversify revenue between national and local advertising

10 National Roll-out Year 1: 3 Schools

11 National Roll-out Year 2: 9 Schools

12 National Roll-out Year 3: 22 Schools

13 National Roll-out Year 4: 32 Schools

14 National Roll-out Year 5: 44 Schools

15 Revenue Revenue (In thousands $)  Revenue Model 50% Print Ad Sales 50% Web Ad Sales  Forecast & Growth 40% Avg. Growth Rate $12.3 MM Sales in Year 5 Revenue (in thousands) $

16 Profitability Net Income (In thousands $)  Breakeven February of Year 2  Cost Drivers Salaries & Wages Printing

17 Cash Flow 012345 Year Operating Cash Flows (In thousands $)  Year 0 $500,000 from investors $30,000 from founders  Major uses Expansion  Major Source Increase in ad revenues Year

18 Funding  Investment Requirements $500,000 for 35% of the company 60% IRR Will fund: hiring of new employees, regional office, and expansion to DU, CSU  Valuation Market value of $70 million in Year 5 Industry P/E ratio of 17.3.

19 Questions?


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