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Kindle Club

Kindle Club. Rebecca Derbyshire, Gemma Downing, Sophie Beaumont, Ian Sims and Katherine Spillane. . Kindle Store Background. Online book store Produces a range of kindle devices Can be used on Apple, Android, Windows and Blackberry devices. Offers books, newspapers, magazines and games.

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Kindle Club

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  1. Kindle Club Rebecca Derbyshire, Gemma Downing, Sophie Beaumont, Ian Sims and Katherine Spillane.

  2. Kindle Store Background • Online book store • Produces a range of kindle devices • Can be used on Apple, Android, Windows and Blackberry devices. • Offers books, newspapers, magazines and games

  3. Target Audience • The target audience will be similar to print book buyers (Mintel 2012) • Targeting those looking for convenience eg: Commuters • Targeting holiday makers.

  4. Kindle Strengths • Kindle books can be used on Apple, Android, Windows and Blackberry devices. • The kindle e-reader only holds kindle books and has an advantage over tablets due to its size. • Strong correlation between number of eBooks and audio books bought when bundled

  5. Kindle Weaknesses • Interactive content such as games are only available to US users, unlike from the Nook and iTunes store • Amazon grant ‘non transferrable rights’, meaning that the files cannot be passed around

  6. Kindle Opportunities • Increased use of public transport (Travel for London 2010) • Ebook sales have overtaken hard copy sales (Malik 2012)

  7. Kindle Threats • Hard copies are still preferred overe-books (Mintel 2012) • Competition

  8. Competitors • Kobo • Nook – Created by Barnes and Noble inc • iBooks- Only available on Apple devices • Sainsburys – Majority stake in Anobii • Tesco – Bought Mobcast

  9. Kindle Club Scheme

  10. The scheme • Points scheme to increase frequency and increase spend. • Points will be called ‘pages’ in line with the book theme • Collect ‘pages’ every time you purchase an eBook • £1 spent in the Kindle Store = 10 pages in your account • 100 pages = £1 to spend in the Kindle store on eBooks, newspapers or hard copies. • Pages can be used in one transaction or put towards part of the amount.

  11. Promotions • The Kindle Book Club will be advertised on Amazon.com for 3 months – where the usual Kindle adverts will go. • Sending out emails to all Kindle eBook buyers • Direct mail to top 20% of customers (Cato 2012). • Advertising on public transport to target commuters. • Advertising in travel agents to target holiday makers. • Advertising on holiday comparison websites

  12. Bus Adverts

  13. Tube adverts

  14. Travel agents advert

  15. Email template

  16. Databases • Amazon already have a complex database in place so we will take advantage of that. • Only basic information and preferences obtained. • Tracks purchases in order to find out favourite books, authors, etc • We will use the database to send targeted recommendations to customers in order to increase frequency and spend. • We will also use the database to send out monthly points statements. • The database will also be used to track who our most valuable customers are, as they will be receiving direct mail in the post.

  17. Privacy policy • Information we collect and how we use it – not sold to third parties. • Security information and how we will keep data safe – secure firewalls • Opt in/Opt out procedures – can opt out of emails and monthly statements • Termination policy – 2 months notice • Submission

  18. Lifetime value • A customer who spends £4.75 on a book 1-2 times a month will spend £85.50 • Amazon make a £25.65 (30%) profit from this. • We expect users to use kindle for 5 years giving each consumer a lifetime value of £128.25

  19. Budget • 383 million books bought a year (Barr 2013) • That’s £1,819, 250,000 • Amazon lose 40p per £4.75 spent per book • That’s 8.4%. • 8.4% of £1,819, 250,000 is £152,817,000- The cost of running the scheme. • We should expect at least an 8.4% ROI

  20. Exit strategy • Using an indirect strategy to keep customers happy. • Sunset clause incorporated in our statement. • Give customers 2 months notice to spend their remaining points. • Prepared for extra traffic as customers redeem excess points. • End the loyalty scheme at a profit to meet the objectives of all parties.

  21. References • Barr, A., 2013. Amazon Shares Climb on Kindle eBook optimism. London: Yahpp. Available from: http://news.yahoo.com/amazon-shares-climb-kindle-e-book-optimism-205601182--finance.html [Accessed 16 March 2012] • Cato, S., 2012. Social choice without the Pareto principle: A comprehensive analysis. Social Choice & Welfare, 39 (4), 869-889. Available from: http://ehis.ebscohost.com/ [Accessed 24 March 2013] • Malik, S., 2012. Kindle ebook sales have overtaken Amazon print sales, says book seller. London: Guardian. Available from: http://www.guardian.co.uk/books/2012/aug/06/amazon-kindle-ebook-sales-overtake-print [Accessed 24 March 2013] • Mintel, 2012., Books and e-books - UK - September 2012. London: Mintel. Available from: http://academic.mintel.com/display/590029/?highlight=true#search_this_report [Accessed 24 March 2013] • Travel for London, 2010. Travel in London. London: Travel for London. Available from: http://www.tfl.gov.uk/assets/downloads/corporate/travel-in-london-report-3.pdf [Accessed 24 March 2013]

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