Strategic Situation Summary:
Market Target(s) Description: Barnes & Noble Nook
1. Market Segments Identified-
Middle-Upper Class, educated, moderate- high income, heavy internet user
2. Primary Market- Business travelers
Percent More Likely Than Average U.S. Adult to….
• Have accessed the Internet outside the home via WiFi or wireless connection (in last 30 days): 199% • Have household income of $100,000 or more annually: 87% • Have accessed the Internet with a cell phone or other mobile device (in last 30 days): 154% • Be a Heavy Internet User: 116%
• Have a Bachelor’s or Post-Graduate Degree: 111%
• Be between the ages of 35-54: 20%
• Be male: 16%
3. Secondary Market- Education- High School students, College Undergraduates
4. Market Characteristics
a. Geographic- Suburban – travel to cities for work or school
The following is a survey conducted for Nook Owners’ age distribution from 111 Nook owners • 7.21% Nook Owners between 10 and 19 - 8 out of 111. • 21.62% Nook owners between 20-29 – 24 out of 111. • 17.11% of Nook owners between 30-39 – 19 out of 111. • 22.52% of Nook owners are between 40-49 – 25 out of 111. • 18.01% of Nook owners are between 50-59 – 20 out of 111. • 11.71% of Nook owners are between 60-69 – 13 out of 111. • Just 1 nook owner between 70-79.
• Just 1 nook owner between 80-89.
• Primary Motivation:
• Benefits sought:
Objectives for the Market Target(s):
Marketing Program Positioning Strategy:
A. Product Strategy
a. New Products
b. Product Improvements: Incremental Innovation - NOOKstudy
i. It will allow the student instant downloads for academic ebooks. It will allow students to search for keywords in lecture notes, syllabuses and more.
ii. It's a desktop app that will work on Macs and PCs. When installed, it provides students with access to a wide library of textbooks for less than standard books.
iii. Furthermore, the app will enable students to highlight and take notes that are searchable and customizable, and provide students access to all of their materials – eTextbooks, lecture notes, syllabi, slides, images, and other course-related documents – all in one place. Their digital library will be able to go from home, to the library, and to the classroom.
B. Distribution Strategy
C. Price Strategy:
a. Of the 181 million US consumers who are online, 14%, or 25 million consumers, say that eReaders priced at $199 or higher — the current price range for eReaders — are expensive, but they’d still consider them for purchase at that price point. What this means: The maximum addressable market for eReaders as they are currently priced is substantial, but to reach the largest market possible, the prices will need to come down. Still, they have phenomenal social and economic impact as they catalyze a new behavior of digital reading across multiple devices. We’re just at the beginning of this revolution. [pic]
D. Promotion Strategy
i. Banner ads inside books. The average U.S. adult reads four books a year; with a population of 250 million you get 1 billion books digested annually. At 200 pages per book, that's 200 billion potential ad impressions if just one ad was placed at the bottom of each page. Now, charge a $20 CPM for such premium placement and you have just unlocked a $4 billion advertising market. This concept can extend to college textbooks...
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