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BRANDING PROJECT: CREATING A NEW BOOKSTORE BRAND
Rodrigo DelgadoNoah FedericiJeffrey KennedyCrystal LinChelsea LowryRahul Roddam
Purpose
Challenge:To identify a product category and to create a brand strategy.
Our choice:We decided to take a struggling retail environment and create a brand that would disrupt the current model and create a new solution for customers.
We decided to create the bookstore of the future.
Overview
How we approached the task:
1. Industry, market, and competitive analysis2. Customer research and market segmentation3. Brand positioning development4. Relevance and relationship building5. Brand extension/portfolio strategy6. Brand materials
INDUSTRY, MARKET, AND COMPETITIVE ANALYSIS
Industry Analysis
• An industry with medium concentration and key players are the traditional giants
• Industry boundaries were previously narrow, but now blurred and broad with several players trying to create a “place to go”
• Industry decline (-1.6%)• A few books stores will benefit (i.e. Barnes & Noble)
due to strong e-reader and thriving e-book store• “Some firms will be able to weather the changes in
the industry by differentiating themselves through niche markets or adapting to new technological trends”
• Industry trends: Poised for dramatic change• Traditional bookstores investing in online capabilities,
but have yet to significantly alter in-store experience
Source: IBISWorld Industry Report 45121 - November 2012 | Justin Waterman - Book Stores in the US
Key Statistics
Industry Cycle
5 Forces Analysis
Threat of new entrants: Low
High capital investment and presence of industry giants
Threat of substitutes: High
Due to unlimited apps, online communities, WiFi ubiquity, and
library/rent-a-book formats
Buyer power: High
The barriers and prices that previously kept buyers loyal to one
platform are reducing.
Supplier power: Low
Publishers struggle with margins and multiple e-book platforms exist in
the market
Rivalry intensity: Medium
• Multiple players attempting to be all things (bookstore, e-reader provider, café)
• Audience tends to strongly identify with one brand, so differentiation is key.
Source: IBISWorld Industry Report 45121 - November 2012 | Justin Waterman - Book Stores in the US
Barnes ‘n Noble Amazon
Market Share 52%* 50%*
Growth $1 billion digital growth*
12.3% in new book sales
Competitive positioning
College/UniversityNook- Digital
Digital
Business model Brick and mortar, online
Digital/ e-commerce
Strengths Only national chain Can order anywhere
Weaknesses Out dated, big chain feel
No touchablity or social interaction
How we must compete
Create a more interactive social environment
Have the selection and interactive environment
• http://techcrunch.com/2010/09/16/barnes-noble-projects-1b-in-digital-revenue-25-market-share-by-2013/ • http://seekingalpha.com/article/250507-amazon-positioned-for-50-overall-market-share-by-end-of-2012
Competitive Landscape
Offline
Online
Independent Bookstores
Internet Cafes
Smaller Retail Chains
Competitive Landscape
Opportunity
CUSTOMER RESEARCH AND MARKET SEGMENTATION
Research Methods
- Research the industry
- Conduct interviews about buying and reading habits
- Designed and Implemented a survey around the design and naming of the concept
To be deleted
• Research the consumer/customer (end-user)– What are their needs and wants?– What are they putting up with that if you can solve
you can sway their purchase decision?– What are the purchase drivers and motivators?–
Include results from our in-depth and survey research
To be deleted
• Identify market segment to target– Segment and size (estimate) the market
- Tech Savvy- “Atmosphere” matters- Willing and able to pay
for “elite” leisure time regularly
- professionals
Urban Aristocrat
- Tightly follow digital trends
- Embrace new and cool experience
- Price sensitive, but reward themselves occasionally
- Young professionals / students
Adventurer
- Not a fan of e-books- Prefer the smell and feel
of paper- Enjoy reading in artsy
cafes / bookstores- Professionals / students
Blue Bloods
- Book club fans - Social, interactive- Triggered by events- professionals/students
Party Animals
MA: Cambridge, Boston NY: New York
CA: San Francisco, LA
IL: Chicago
Geographic Focus
• Population: 645,169• Market: $370 Million
Cambridge - Boston
• Population: 8.9 Million• Market: $5.1 Billion
New York City
• Population: 2.85 Million• Market: $1.6 Billion
Chicago
Population: 815,358Market: $469 Million
San Francisco
BRAND DESIGN, POSITIONING & CONCEPT
To be deleted
• Develop a positioning statement, personality and voice, brand story– What single most important thing can you promise
(and deliver) that will motivate someone to buy?
Positioning Statement
Pageless will bridge the social gap between the convenience and
selection of online book shopping with the experience of a bookstore café
for Urban Aristocrats.
Pageless’ unique interactive environment will stimulate your senses and allow you to fall
in love with reading all over again.
“We are the bookstore of the future. We are digital, trendy and desirable. We combine the homely comforts of a lounge study with the technological innovation you so yearn. Our books are digital, but our ambiance – personal. Our café lets you relax with your book of choice, while you sip on your favorite beverage or grab a bite. Our variety of lounging options caters to your every need, providing a social, relaxed and invigorating environment.”
Concept Description
“where words have no limits”No limits = infinity. Exploratory, freedom from the pages. “words” also refers to how difficult it is to describe the concept in words.
The concept is limitless, in that it is scalable and can be expanded easily.
Tag Line
Style
Sophisticated, personal, trendy, laidback, social
Brand Toolkit
Logo Typography
Font: Multicolore
Colors
BlackOrange (FFCC00)Blue (3B5998)
What it is
Cafe/Pub
ConferenceRoom
ConferenceRoom
ConferenceRoom
Lounge area
Study Lounge
Game Room
Team Room
LCD Screens
LCD Screens
Outdoor Seating
How It Works
Interiors: Lounge Section
• Modern Lounge• Comfy seating• Ambient / indie rock music
Interiors: Study Section
• Old school study• Leather + Wood + Lamps
Interiors: Café Section
• Trendy café• Bar (Wine + Beer)• Food
Interiors: Team Rooms
• Collaborative• LCD Projectors + Conferencing
Interiors: Game Room
• Board Games• Digital Games• Arcade Games
RELEVANCE AND RELATIONSHIP BUILDING
To be deleted
• Identify the optimal brand consumer relationship– What relationship do they want to have with your
brand and why?• Create the cultural relevance of the brand– How can you make the brand relevant to today’s
culture
relationships
ConferenceRoom
ConferenceRoom
TeamRoom
Lounge area
Study Lounge
Game Room
Team Room
LCD Screens
LCD Screens
Complementary Target Groups:
Gamers Students / Scholars Nostalgic Novelists
ConferenceRoom
Party animal
Urban Aristocrat
Adventurer
Cafe/Pub
Blue Bloods
Cultural Relevance
Product Partnership Community
Cultural Relevance
Product Partnership Community
• Details about the product/store that is relevant to today’s culture
• Stats on e-book usage and trendsRelevant images
or statistics
A place to meet and create new groups
Food partnership for café
Technology provider and retail relationship
Publishers for distribution rights and access to authors
Cultural Relevance
Product Partnership Community
Cultural Relevance
Promotions to drive community engagement:
• Be the author– Ordinary people submit books that they have written,
people vote on a winner, which is then digitally published.
• Crowd-sourced e-book– Each person writes one line
• Conversations with authors– Live via Skype
Product Partnership Community
BRAND EXTENSION AND PORTFOLIO STRATEGY
To be deleted
• Develop the Brand extension/portfolio strategy
• New product plan?
Sources of Revenue
Publishing• Income generated from sales of various forms of media.• Users to shop for, download, browse, and read e-books,
newspapers, magazines, blogs, and other digital media via wireless networking
• Allow college students to rent textbooks from three different publishers for a fixed period of time.
Food & Beverage• Income generated from traditional café business model• cafe should equal at least 10 to 18 percent of annual sales.• profit margins for cafe and restaurant should equal 25 and 7 percent,
respectively.
Membership & Ancillary Services• Renewable revenue stream generated though membership program• Fee for use of Wi-Fi and printing services
Membership
Pulitzer Rewards Program• $179 annual membership fee• Pulitzer members enjoy multiple benefits including…• 25% discount for cafe purchases and printing• free access to Wi-Fi• remote access to media
MARKETING STRATEGY
Marketing Collateral
Social Media
• Social book reviews and reading lists to see what books your social network recommends
• “Check in” on Facebook (or tweet) and get 10% off coffee at the café
• Virtual book clubs enable readers to respond to and discuss questions in an online community
• Skype sessions with authors, screened in the café and aired online. Questions submitted via Twitter.
• Host professional or interest-based clubs, leveraging LinkedIn groups
Print Media• Local Newspapers & Magazines• Flyers with call tracking• Customized Mailing• Discount Cards
Word of Mouth• Leaders of Opinion or Book Authors• Community Groups• Public Relations
Billboards
• Static• Mobile• Interactive
Sponsoring• Job Fairs• Seminars• Tradeshows• Spelling Bees• Special Events
CONCLUSION: CREATIVE STRATEGY
Creative Strategy
• Product or Service• Target Audience• Desired Action • Accepted Premise• Key Thought• Reason Why• Image/Tone• Other Considerations
where words have no limits
APPENDIX
Integrated online marketing approach
Source: http://www.totalwebdesign.com.au/blog/internet-marketing/growing-your-business-through-internet-marketing-infographic
Industry Analysis: The supply chain
IBISWorld Industry Report 45121 - November 2012 | Justin Waterman - Book Stores in the US
Did you know… appendix
The Offline Marketing• Is great for building local businesses• Attract a variety of different people• Generates immediate leads
Source: eMarketer eConsultancy Digital Marketers United
Now does this mean online marketing ineffectiveness?
Did you know… appendix
Source: eMarketer eConsultancy Digital Marketers United
No! Marketers are now attempting to use a hybrid of metrics that feature both online and offline metrics
Did you know…appendix
While many are quick to disregards offline marketing tactics, it is essential to adopt offline-measuring to show true value for brands
Source: eMarketer eConsultancy Digital Marketers United
Identity Development
5 Forces (Detailed)
Threat of new entrants: Low • Bookstores: Incumbents struggling to
modernize• Café: Plentiful local and several dominant
giants• High capital investment for physical
location
Threat of substitutes: High • Apps provide online access to unlimited
source of titles• Online communities accessed from
comfort of home• Increasing WiFi ubiquity reduces need
for a physical meeting place or hotspot• Libraries and rent-a-text offerings pose
threat to purchasing model of e-books
Buyer power: High • Apps provide the buyer with multiple
formats for consuming reading material• Prices decreasing on e-readers, so
buyers not committed or locked in to one provider
• Increasing Wi-Fi ubiquity means buyers do not necessarily have to go to café’s for access
Supplier power: Low • Publishers: Struggling to make margins as
industry digitizes• E-book platforms: Multiple platforms with
bespoke e-book store, fight for market share
• Piracy: Threatens book sales, profits, and copyright
Rivalry intensity: Medium • Multiple players attempting to be all things (bookstore, place to meet, e-reader provider, café)• Premium pricing still in play for this target audience (specialty drinks, new titles, high book prices)• Audience tends to strongly identify with one brand that is out there (Not a coffee, I have a
Starbucks; Not an e-reader, I have a Kindle), so differentiation is key.
Source: IBISWorld Industry Report 45121 - November 2012 | Justin Waterman - Book Stores in the US