University Parent, Inc.

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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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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.com

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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 Parents Guide to Boulder
• 100 of Fall 03 advertisers purchased an ad in
  the Summer 04 guide

4
Need
Parents

• Connecting with students
• Parents stay informed
• Money Savings/Ability to plan ahead
• Convenience/Portability

Businesses

• Building image
• Generating revenue

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
• Ralphies Guide
• Competition will vary at every campus

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Competitive Advantage

• Specialized niche
• No one currently reaches
• Proven track record
• Relationship with 35 advertisers
• Distribution
• Agreements with university, local businesses

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Key Marketing Strategies

• Parents
• Distribution campus, hotels, restaurants
• WebLogs
• Advertisers
• Direct Mail
• Relationship Building
• Awards

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Risks
Problem Solution
Duplication by competitors Establish brand, quick national roll-out
Universities uncooperative Contact universities for permission before expanding, Internships
Insufficient ad sales Prove ROI, diversify revenue between national and local advertising
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National Roll-out

• Year 1 3 Schools

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National Roll-out

• Year 2 9 Schools

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National Roll-out

• Year 3 22 Schools

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National Roll-out

• Year 4 32 Schools

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National Roll-out

• Year 5 44 Schools

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Revenue

• 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)
Revenue (In thousands )
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Profitability

• Breakeven
• February of Year 2

• Cost Drivers
• Salaries Wages
• Printing

Net Income (In thousands )
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Cash Flow
Operating Cash Flows (In thousands )

• Year 0
• 500,000 from investors
• 30,000 from founders
• Major uses
• Expansion
• Major Source
• Increase in ad revenues

0
1
2
3
4
5
Year
Year
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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.

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Questions?