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Contents

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Company Analysis
Corporate Amazon Culture:

Amazon has a chaotic work environment with workers strung every which way but this exciting environment keeps the workers motivated and work driven. Je Bezos never puts himself over his hard working employees because everyone has had such a major part in the growth of the company.

Amazon Values:
Customer Obsession: We start with the customer and work backwards. Innovation: If you do not listen to your customers you will fail. But if you only listen to your customers you will fail. Bias for Action: We live in a time of unheralded revolution and insurmountable opportunity-provided we make every minute count. Ownership: Ownership matters when you are building a great company. Owners think long-term, plead passionately for their projects and ideas, and are empowered to respectfully challenge decisions. High Hiring Bar: When making a hiring decision we ask ourselves: Will I admire this person? Will I learn from this person? Is this person a superstar? Frugality: We spend money on things that really matter and believe that frugality breeds resourcefulness, self-suciency, and invention!

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Consumer Analysis continued


What motivates these consumers to buy the Kindle?
Pg3 College students and their parents are motivated to buy this product because it: Is less strain on the students physically because they can download all of their textbooks right to one device (Kindle) Textbooks are less money on the Kindle then buying them from bookstores. (Kindle will be paid o in a matter of 2 to 3 semesters) It is easy to bookmark pages and paragraphs and take short notes meaning no loss of notes. Students can listen to music while researching. It better to have all of your books on one devise for all of the students who travel home and need to take their school books with them. Of course, if you cannot nd a book that you need in the library on campus you can purchase the book for kindle It also has a built in dictionary The kindle appeals to the traveler because: It does not take up much space when packing for travels It stays charged for days You have multiple books to read on the kindle It saves the last page read It has an on-o switch for the wireless feature so it can be read in airplanes Business professionals like the kindle because: It weighs less than a magazine, not much more than a paper and allows extra space in the briefcase or work bag. They can catch up on the news or their favorite magazines while on break Newspapers can be read at anytime They will spend less time waiting in busy lines at the newsstands and more time reading them.
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Kindle Market Analysis

Market Size Research:


Demographics for E-Readers:

Gender Ratio: 56.3% Men and 43.7% women Average Age: 35-54 years old Average Household Income: $100k+ Average Minimum Education: Bachelors or Post Graduate

The market it considerably low which means there is great opportunity for growth in the next few years and beyond.

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Kindle Market Analysis continued

Research during the 3 Quarter in 2009:


3% of US consumers read eBooks on their desktop computers today; 2% read on laptops; and fewer than 1% read on dedicated eReaders, mobile phones, or netbooks, respectively. When it comes to future demand, 19% of US consumers say they're interested in reading eBooks on their desktop PCs, 14% say they're interested in reading on eReaders, 11% voice interest in reading on netbooks, and 5% say they're interested in reading on their mobile phones.
**These numbers are estimates (Information gathered from Citi Investment Research)

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What is being said about the Nook versus the Kindle:


Barnes & Noble has to double-down to beat Amazon. Among the general US population, B&N has nearly the same reach as Amazon: 16% of US consumers report shopping at a B&N store or Web site in the past 30 days, and 17% say the same about shopping at Amazon. But among consumers who are interested in reading eBooks on eReaders, 40% more are Amazon shoppers than are B&N shoppers.

Problems with physical retailers:


Wal-Mart and Target are underplaying their hands. Of the 68 million US consumers interested in reading eBooks on any device, more shop at Wal-Mart and Target than at Amazon or B&N. Of the 30 million US consumers interested in reading eBooks on eReaders, 61% have shopped at Wal-Mart in the past 30 days and 55% have shopped at Target, while 38% shopped at Amazon and 27% shopped at B&N. Through our Simplify Kindle campaign we intended to raise awareness of e-readers by 15% by November of 2010. We have acquired an abundance of research available for us to develop great strategies.

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Product Analysis
The Kindle brand from Amazon is relatively new and yet is well know and at the top of e-readers that have already come out. The competition of the NOOK will high. We will develop a brand name that will shine to the consumers.

o o o o

Has a strong lead in the e-reader market Kindles previous consumers will stay in the market because of reliability and the newly added features such as international use. The price of the kindle is the same as its biggest competitor Amazon makes it easy for consumers to purchase books from its own bookstore Oprah has endorsed the Kindle (many of people across the nation love and trust Oprah and what she stands for) Kindles were given to everyone in the audience on that speci c day Bezos did a segment of the show on how to use the Kindle The customer reviews on the Amazon website allow for potential buyers to determine why they want to purchase the Kindle. Customers can place their pictures of themselves and their Kindle on the website and may also choose to write about think about the Kindle Works in the companies favor that existing kindle customers can communicate (via the website) with the new and potential buyers of the Kindle The Kindle is simple and focuses on the reason to own a Kindle, to read your favorite books on one device

The kindle:

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Competitive Analysis
Competition:
The direct competition for Amazons Kindle is the Nook by Barns and Noble. The Nook and the Kindle o er similar features. However, the Kindle has already established a large part of the E-reader market. Nook over the Kindle: Colored navigation Lending of books to other for two week period. During the two week period the original buyer cannot read this same book. Extended storage space Kindle over the Nook: International usage Lighter in weight Text-to-speech conversion Browsing capability These are only the key di erences in the products themselves. Many consumers say that they will stick with the Kindle because it is trustworthy. More than just the product, consumers are going to look at the brand name in which they can trust. Like stated before Kindle has taken a large amount of the e-reader market thus far, but there is more work to be done in order to keep such a high ranking in the e-reader market.
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S.W.O.T.
Strengths
The Kindle can help save the consumer money on buying paper books It is a Green product Amazon has very strong brand recognition with loyal customers The Kindle was a pioneer in the development of electronic readers Amazon has made the Kindle available to ship around the world with wireless delivery in over 100 countries The Kindle works in all lighting conditions and is available with a built in dictionary Books downloaded on the Kindle can also be read on your computer

Weaknesses

The books downloaded on the Kindle have to be purchased while paper books can be loaned from the library and returned The Kindle must be purchased online so you cannot receive it instantly The Kindle is an expensive product that will take time to make it worth the price The Kindle is not as durable and cannot be as easily replaced as paper books

Opportunity

Amazon has a strong brand recognition and is known for their extensive selection of books Oprah Winfrey is a spokesperson and strong believer in the Kindle There was little to no advertising of the Kindle in previous years and product awareness has an enormous opportunity to grow

Threats

Companies are constantly releasing new electronic readers into the market such as Barnes & Nobles Nook The Kindle is not wireless capable and has fallen behind on extras that other E-readers are developing The deign of the Kindle is not as modern as the newer E-readers
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Target Market Profile

Tina Carter Pro le: Age: 20 years old Education: Some College Income: less than $15,000 Hobbies: Attending concerts, working out, social events with friends, shopping and nature hikes

Tina is a junior is college majoring in microbiology. Each semester she nds herself hauling enormous books throughout campus. Tina is looking for a device that is much lighter on her back but still able to get all the bene ts from the text. Tina is involved in a lot of clubs at her college so she needs something will use little power and will not need to be charged for hours on in. Tina cares about the environment and incorporates green into her daily life. Tina loves teen vogue magazine and reads it faithfully along with similar magazines. She lives in a dorm so she hates her book/ magazine clutter. Pg10

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Target Market Profile

Sandra Summerland Pro le: Age: 37 years old Education: Masters Degree Income: $65,000 year Hobbies: Reading, art, music, cross-word puzzles Sandra works as a marketing consultant at an International Marketing Company. She frequently travels so she needs a device that is light, convenient and doesnt take up too much space. Sandra enjoys reading in her spare time, especially while she is traveling like on a plane. Sandra is technology-savvy and enjoys reading a good classic or catching up on the most recent issue of People Magazine.

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Target Market Profile


Henry Dabin Pro le: Age: 55 years old Education: Bachelors Degree Income: $85,000 year Hobbies: Reading, shing, xing classic cars, playing golf and gardening Henry has been retired for a year now and enjoys spending time with his family every morning, Henry reads the newspaper. He enjoys classics like Moby Dick and although he is not a heavy reader, he likes to read when he is traveling somewhere with his wife or in the house on a rainy day. Henry has a hard time reading the small print in books and often loses track of the page he was reading. Henry is okay with technology as long as it is not extremely di cult. Henry needs a device that is easy to understand, easy to read and easy to manage.

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Objectives
Marketing:
Increase awareness of Kindle by 50% in 6 months Grow sales by 20% by June 2011 Increase market share in consumers 18-24

Advertising:

Increase media advertisements by 50% by June 2010 Oer trials uses to consumers at several dierent facilities Expand media outlets through which the Kindle will be advertised

Communication:

People will perceive our product as simple, convenient and green The Kindle will replace paper books, magazines and newspapers The Kindle will save people money and time The Kindle will help the environment in its eort to be more Green

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Advertising Strategy
Message Strategy a) Objectives:
o o o Show how the Kindle can simplify the life of our target market College Students Travelers Professionals The message we are going to deliver in the advertisements is how the Kindle simpli es the consumers life.

b) c)

Strategy: Tactics:

We will show the market how they can simplify their life with the Kindle through advertisements and promotional pieces as well as some previous publicity from the Oprah Show.

The advertisements will focus on how the Kindle can simplify the lives of the consumers in the target market The video promotion will actively involve the consumers. The consumers will make videos of how the kindle simplies their life The plane promotion will allow for all three of the kindle target market groups a chance to try the Kindle during their ight

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ii.
We chose to use print, television, and online advertisements. a) o o o o Pg15 Promotion: Major airline promo Customer video submissions promo Television Travel Channel 60 Minutes on CBS Oprah Show Advertisements: Strategy:

Media Strategy:
Travel + Leisure Business Weekly Oprah Magazine Wall Street Journal

o Website Amazon.com Kindles own site - this explains the products and gives details about the promotion

Print Airport Dioramas Los Angeles Airport OHare Fort Worth/Dallas Airport Atlanta Bus Stops Around the airport Magazines/Newspaper

b) Publicity: Oprah Je Bezos was on the show with the Kindle and Oprah gave them always to her audience. She explains the simplicity of the product. Bloggers many bloggers have written about the Kindle experience so far and this will help the undecided audience Submitted videos (may become viral in any instance they are submitted through youtube.com)

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Execution:
o

Promotion:

The 2 Major US Airlines: Delta American Airlines Kindle owners video submissions: By existing users (communicates to new users) The selected video will become the commercial Prizes will be awarded for the best videos

o o

Print:

All print ads will have the same type of message Simplify your . (Fill in the blank with travels, back pains, and workload.) These ads will appear in: Magazines and newspapers shown above Airport terminals Bus stops (airports and campus)

Advertisements:

Television: There will be two types of television commercials: 1) The submitted contest winner 2) Commercial to targeted consumers Simplify YOUR World Business Professionals College Students Travelers

Website:

The website will provide product information/features How and where to purchase the product The rules of the video promo A statement on the airplane promo And how a kindle makes life simpler

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Storyboard for kindle Simplify Your World commecial campaign

(Shows a girl trying to carry around a heavy backpack full of school books.) Voice Over Tired of lugging around all your books for class?

(Shows the girl now happily grabbing her Kindle to put in her backpack as she goes to class.) Voice Over Lighten your book load wih amazons Kindle

Voice Over Kindle simplify your *scribble sounds* backpain appears on screen

Voice Over Where do you Kindle? SHow us how you Kindle & you could see your video here. Go to Kindle.com for details.

(Shows a pair of hands frantically trying to pack everything they need into a briefcase & having no room Voice Over Your business life with out Kindle.

(Same pair of hands now placing a Kindle neatly in the briefcase & closing it without di culty) Voice Over Your business lif with Kindle.

Voice Over Kindle simplify your *scribble sounds* work load appears on screen

Voice Over Where do you Kindle? SHow us how you Kindle & you could see your video here. Go to Kindle.com for details.

(Shows a woman trying to pack items to keep herself busy while she travels/) Voice Over Packing all your favorites can be space consuming.

(Shows some of Kindles features.) Voice Over With Kindle you can have all your favorite magazines, books, newspapers & music right at your ngertips even as you travel. Voice Over Kindle simplify your *scribble sounds* travels appears on screen

Voice Over Where do you Kindle? SHow us how you Kindle & you could see your video here. Go to Kindle.com for details.

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iii.

Sales Promotions

The two promotional strategies we have developed will build the Amazon Kindle brand name even more than it has been previously. Since there is already a trusted name within the business and the product these promotions will get the consumers (old and new) involved in making the market more aware the product.

1)
-

Sales Promo 1

Major airport/airlines Kindle promotion In the top 4 airports in the United States 1. Dallas/Ft. Worth, TX 2. OHare 3. LAX (Los Angeles) 4. ATL (Atlanta) On the top 2 airlines 1. Delta 2. American Airlines

Description: Amazon, fully functional (with exceptions of wireless 3G network) Kindles will be o ered during ight for a free. The passengers will be able to read the rst chapter of any book in our library and will get to learn features of the Kindle with remaining time on the ight. There will short manuals describing features and how to access them. o Time period: 3 Months April, May, and June (Traveling will be at a peak during this time: Spring/summer break (study abroad, travel for leisure, spring break) Summer break (travelers) Business Professionals (heavy traveling months for businesses personal) o How people will know: Website and dioramas at the airports kindle
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Sales Promo 2

How Do YOU Kindle video competition promotion Contest participants must register their Kindle on Amazon.com to enter the contest Amazon.com and Youtube.com will work together In the process of registering for the contest a special YouTube account will be linked through Amazon.com enabling the participant to upload their video to both websites Rules and regulations will be placed on both the Kindle sister site and also in the registration part of the contest Timeline: The How do YOU Kindle video entries will be accepted in January and February of 2011 The commercial with the winning video will be air in late March Winners will be contacted via email and prizes will be given: o 1st place : $10,000 will be given to the winner along with their video being edited into a Kindle commercial o 2nd place: $500 will be given for Amazon.com used for anything o 3rd-25th place: $20 amazon.com-book-gift cards The commercial will are for 3 months YouTube will be worked into the commercial since they will help us host our contest

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Public Relations
Hilltopper advertising is looking to expand the awareness of Amazons Kindle throughout our target market Through research, we found that only half of our sample group had heard of our product and most of those who were aware of the Kindle had seen it while on Amazon.com. We are trying to expand the exposure of this product and create excitement about all the features that an electronic reading device has to o er. Hilltopper advertising and Amazon are going to partner with major airlines and provide consumers of their ights an opportunity to test the Kindle while headed to their destination. Delta and American Airlines will o er free rentals to patrons who can then read a book, magazine or newspaper of their choice while on board their ight. These rentals will have absolutely no cost to the consumer and they will o er a wide range of material to choose from. Brochures will be o ered in the pockets of the seats with more information on what is o ered and how a Kindle is used. The airports will have dioramas and bus stop advertisements for the Kindle that will include information about their free opportunity to test one. On long distance ights, an announcement will be made before the plane leaves the airport informing consumers of this opportunity. After six months of this promotion, major airports will be o ering kiosks with Kindle products that will allow consumers who enjoyed this product the opportunity to purchase one when they are at the airport waiting on their ight. Aamzon.com will also be announcing a contest in which participants are given a chance to have their work put on the Kindle website. Where do you Kindle? will o er consumers an opportunity to show the world where and when they Kindle through a homemade commercial. All applicants will submit their work on a special YouTube/Amazon joint account that is made upon registration to the contest winners commercial will be broadcast as an advertisement for the Kindle on the Kindles homepage and television commercial. Through this, we hope to show people how convenient and simple a Kindle is to use and how implementing one of these in your life can Simplify your World. The participants will be able to submit their videos for 2 months during January and February. The commercial will start in late March. The winners video will be placed on Amazon.com and our sister site that is just about the Kindle and also a television commercial.

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Total Budget for Campaign: $932,710 Budget Knowledge: Although this is 4xs the budget for advertising as it was in 2009; there was also no compe tition like there is now. We plan to take full opportunity to keep pulling the same ratings as in 2009. To do that the consumers need to be more aware and this is what will need to be done to accom plish our goals. *Budget Summary of Costs: Commercial: $501,000 Print Ads: $ 294,210 All Bus-stops: $56,000 Airport Diorama: $32,000 Public Relations: $ 20,000 Video Promo: $19,500 Airport Promo: $10,000

Budget

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