Last Final Presentation

8/3/2019 Last Final Presentation

http://slidepdf.com/reader/full/last-final-presentation 1/28

The Company

Founded in 1995 by Jeff Bezos as an onlinebookstore, now is the America’s largest On line

retailer.

Operations in the United States, Canada, France,Germany Japan and the United Kingdom.

The majority of Amazon’s sales are products sold

by Amazon and the remaining amount fromthird-party sellers.

Sales at the end of 2009: $24.509 billion. 1



Amazon’s Corporate Mission

•“We seek to be Earth’s most customer-centric

company for three

primary customer sets:

consumer customers,seller customers and

developer customers”

• Amazon is able to

leverage the internet to

significantly beat its

competitors’ price2



Amazon’s Goals

1. “Being the Earth's most customer-centriccompany"

2. “Innovating on behalf of customers"

3. “The idea to personalize... the store for eachand every individual customer."

3



Amazon’s Business Model

4

Virtuous Circle



Amazon’s Business Model

Fulfillment Centers: Bigwarehouses located aroundairports in North America,Europe and Asia

Data Warehouse: Is the centralpoint of Amazon’s data

No physical retail stores:reduce huge expenses.

5



Books as a % of Amazon’s 2009 North

America Net Sales

6



North America Trade Book Market

Share 2004-2009

7



88

>450 000 books

available for

download

Newspapers,

magazines and

blogs subscription

Amazon keeps 65%

of the revenue fromall eBook sales for

Kindle

Kindle eBooks add

35% to a physical book’s sale on

Amazon

Amazon reported 80%of eBook market

"Our vision is to have every book ever printed, in any

language, all available in tinder 60 seconds .“

- Jeff Bezos, Amazon.com CEO

Amazon Kindle: Product & Value Proposition…



Value Proposition:

•

Readability: No glare insunlight, no eyes strain,sharp display•Electronic ink display

• 1 month of battery life

• Small and slim size

• Ultra light -8.5 ounces

Convenience of getting books

in 60 seconds



Price-profit relationship

10

http://www.fonerbooks.com/selfpublishing/?p=164





Price

• New Kindle price at just $139 to battle Ipad

• Kindle books outselling hardcovers

• Kindle reader apps for iphone, mac, androids,

windows extends the potential customers for e book to tens of millions.

• Perhaps libraries will flourish (readers will still like tobrowse)

•

Kindle: hardly done evolving(no price reduction).

11



E-book reader Growth factors

12



Awareness

13



Internet Users

14



Rise in e-book market

• 400 year old newspaper industry is moving trying to take

advantage of online space.

• The e-book market hit $130 million in 2006, expected to

reach $220 million this year.

• “Five years out, the total e-book market: between $3 billionand $5 billion.

• E-book market is in early stages.

• E-books overtook audio-books in 2009 : sales reached $313

million in 2009, up 176.6%.• Young adults are using more e books than baby boomers.

15

Ki dl k t d



Kindle market and

Segmentation

16

Current market for age group of 35+.

Age group 20-29 i.e younger segment need to be focused.



Competitors

17

kindle 3 ipad nook(wi-fi only) display E-ink LCD E-ink price $139 $499 $149

size( inch) 7.5" x 4.8" x 0.335" 9.56" x 7l47" x0.5" 8.1" x 5.0" x

0.48" weight 8.5 24 11.6

battery life 1 month 10 hours 10days Wireless

YES

YES

YES



Ipad : multi media device

18



Recommendations….

19

Payment options : Installment payments for students

Rebate marketing

Partnership with cellular network such as AT&T and caneffectively use their 3G network

Partnership with airline industry



Promotional Schemes…

• Pamphlets distributed over school to generateawareness to the younger segment. ( compare ebook,text book price)

•Regular promotional events in major schools anduniversities and offer student discount of 10%

•Free coupons of discounts for heavy Amazon ebook

readers

20



Promotional Schemes….

Holiday gift promotion - sharing with your beloved ones

• Christmas gift season – share your reading experience withyour beloved ones.

•Buy 2 or more, kindle gifts each kindle 5 best-sellers(worth 50 USD)

• Buy kindle now to get 10% off

• Valentines gift season – own your “pair” kindles

• Free customized lighted covers for you two. ( name on thecase, styles for choices)

• Buy 2 get 20% off

• Extended 2 years warranty21



Distribution Channel(Place)

22

Currently Kindle is only available through Amazon.com.

Hence to increase the sales they should strengthen thedistribution channel:

•Availability over mass distribution channel such as

Walmart, Target, Best buy, Staples etc

•Target Sales : Set variable incentives for sales people tospread word of mouth

•Promote Kindle through website

•Provide retailers with physical space.



Marketing – 6 M’s

Mission:

To increase the popularity of Kindle

Objectives:

To place Kindle at the top of the list.

Increase the e-book sales.

23




Message:

Read e-books for 10 hours without straining

your eyes.

Market:

E-book readers want real book reading

experience on their electronic device.

24




• Media

Amazon is using following methods to

promote Kindle and create brand awareness

- Advertisement

- Place kindle on Amazon’s homepage

- Comparing old and new generation Kindle at

mega stores- Telephone

- Consumer feedback videos online. 25




• Money :

Price reduced to just USD $139(with Wi-Fi)!!

USD $189 (Wi-Fi + 3G)

Amazon planning to reduce kindle e-book

prices !

Measurement:

Effectiveness of Kindle campaign26



Kindles opportunities…..

27

Kindle

4 Ps, 5 Cs and 6 Ms will help Amazon kindle to attain theglobal market share.



Choice is yours!!

28

Last Final Presentation

Documents

Transcript of Last Final Presentation