Barnes & Noble
Nook Color
Oakland University
JRN 341 The Advertising Medium
Instructor: Kim R. Madeleine
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Barnes & Noble
Nook Color
Oakland University
JRN 341 The Advertising Medium
Instructor: Kim R. Madeleine
Joan Carleton
Kelsey Krumrey
Tanner Kruse
Kristin Scarth
Jacquelin Van Dox
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Table of Contents
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Introduction, page 4
Situation Analysis, page 5
o Company Profile, page 5
o Primary Research, page 5
o Consumer Profile, page 5
o Market Profile, page 7
o Product Analysis, page 7
o Competition, page 8
Problems and Opportunities, page 11
o SWOT Analysis, page 11
Target Market Profile, page 13
o Demographic, page 13
o Psychographic, page 13
o Geographic, page 13
o Niche/Segment, page 13
o Usage Pattern/Time, page 13
Marketing and Advertising Objectives, page 14
o Objectives, page 14
o Communication Budget, page 14
Marketing Communication Strategy Overview, page 15
o Promotional Strategy, page 15
o Rationale, page 15
o Objective, page 15
o Public Relations/Product Publicity, page 15
Advertising Strategy, page 17
o Creative Strategy, page 17
o Media Strategy, page 17
o Media Strategy Elements, page 17
Integrated Communications, page 20
o Direct Marketing, page 20
o Sales Promotion, page 20
Campaign Evaluation, page 20
o Primary Research, page 21
o Questionnaire, page 21
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Introduction:
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This Plans Book is for the Barnes & Noble Nook Color. It is a yearlong marketing
communications campaign from January to December of 2011. The campaign is budgeted at
12 million dollars for use in several media outlets. These outlets will reach technology-savvy
readers and families in order to increase knowledge and awareness of the Nook Color brand.
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Situation Analysis:
Company:
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Barnes & Noble’s company mission is to operate the best specialty retail business in
America, regardless of the products they sell.
Barnes & Noble continually brings the industry nuances of style and approaches to
bookselling, which are consistent with their evolving aspirations.
Technology has made print books into a slowly dying market, which is a problem Barnes &
Noble has had to overcome.
Barnes & Noble is the number one bookseller in the US. It operates 1,355 bookstores (635
college bookstores). Most locations contain Starbucks cafes. In 2009, Barnes & Noble
introduced the NOOK eReader.
Barnes & Noble’s biggest competitors are Amazon.com, Books-A-Million and Borders
Group.
The Nook Color’s biggest competitors are Amazon’s Kindle, Sony’s Reader Pocket and
Apple’s iPad, which has eReader capabilities but is more that an eReader.
Industry trends include eReaders, applications (apps) and hand-held technology.
Electronics that are portable and multi-task are the growing trend in today’s market.
As print books are slowly disappearing, this is the perfect opportunity to show the versatility
of the Nook Color, which is great for people on the go who multitask. Keeping the feel of the
advertising toward versatility and portability, the Nook Color can be at your side for
whatever task might be at hand. It goes anywhere and benefits multiple parts of your life. The
opportunity to stress the versatility is something other eReaders have not focused on.
Primary Research:
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Send out questionnaire to existing Barnes & Noble database, including rewards members.
Offer a 10 percent off coupon, redeemable at Barnes & Noble, to those who complete and
submit the questionnaire.
Compare before and after results of pre- and post-questionnaire to see how to better advertise
the Nook Color.
Consumer:
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Our primary consumers for the Nook Color are both men and women. They get their kids on
the bus in the morning, go to work for an eight-hour day, pick the kids back up, make dinner,
give their children baths and read them bedtime stories. They buy products that are
affordable, yet dependable. They buy products that make their lives easier. In their busy,
hectic lives, they need to know that they are buying products that will last. They don’t have
time to spare so they need an eReader that will always be reliable. The Nook Color is a
perfect product for them because it is affordable and lightweight. It is easy to carry around
and condenses the carrying of multiple books, newspapers and even laptops.
Identifying Consumers:
o Our consumers are family-oriented people who use the Nook Color for various
things. They check the weather and news on the Nook Color in the morning before
they go to work. They pull up a children’s book for their kids to read while they
drive them to the bus stop. Consumers take the Nook Color with them to work to
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check emails. They read their children bedtime stories on the Nook Color. They relax
before bed and read their favorite book, magazine or newspaper. These consumers are
not necessarily heavy readers, but the Nook Color has so much to offer that it is used
often.
o Our secondary target audience is college students, both men and women. They
download all of their books for class on their eReaders, which makes their walk to
class a lot easier. They don’t need to carry a backpack full of books around with
them, because all of their books are stored on the Nook Color. They also use their
Nook Color to check emails and catch up on some enjoyment reading of their own.
Soon, the Nook Color will introduce applications, which will only make this audience
use the Nook Color more frequently.
Identify Consumer Motivation:
o Consumers buy products to help make their lives easier, such as the Nook Color for
technology and portability.
o They like to keep up on current technology.
o They are travelers, so the Nook Color helps lighten their load.
o They multitask, so the Nook Color is great for them because it is so versatile and has
so many different options to offer them.
Identifying Consumer Needs, Wants, Problems and Interests:
o Needs:
 A product that is simple.
 A product that is affordable.
 A product that is versatile.
 A product that is dependable.
 A product that is kid-friendly.
o Wants:
 A product that simplifies the user’s life.
 A product that is affordable.
 A product that offers entertainment and practicality.
 A product that makes reading more enjoyable.
o Problems:
 They enjoy technology but can’t always afford the latest and greatest.
 They are busy and have little leisure time.
 They may not have the space for all the reading material they may want.
 Their kid’s books don’t last through everyday playtime and are missing pages
by bedtime.
o Interests:
 Products that help to simplify their lives.
 Products that the whole family can enjoy together.
Identifying Consumer Values and Lifestyles:
o These consumers:
 Are on the go.
 Are family-oriented.
 Enjoy light reading.
 Like to travel.
 Enjoy time with family and friends.
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Are busy and hardworking.
Enjoy eco-friendly products (such as the Nook Color).
Enjoy simplicity.
Market:
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Consumer / Market Analysis:
o Consumers are familiar with eReaders, but are still in the process of converting from
physical reading to digital reading. We need to peak consumer interest in this new
technology in order to stimulate trial. This will begin the process of converting
readers to eReaders by making our market aware of the new technology. Once our
market accepts our product as an advanced and quality eReader, we will focus on
versatility, our unique selling point, to set us apart from our eReader competition in
order to become preferred in the market within the brand loyalty continuum.
Marketing Mix:
o Pricing:
 Our pricing is competitive and strategic. When compared to other eReaders
we are more expensive because we have more to offer with our color
technology and our high usability and functionality. When compared to tablets
we are much less expensive. We cannot compare with tablet’s usability
because they function as a fully loaded computer. Our product’s price mirrors
our usability and functionality by lying between our direct market of other
eReaders and our indirect market of tablet computers.
o Distribution:
 The Nook Color is distributed nationally through all Barnes & Noble
locations. This can be an opportunity and also a threat within the SWOT
analysis. We gain access to a large, previously established group of loyal
customers, but simultaneously limit our market by not offering our product in
locations besides Barnes & Noble. Online distribution through our website
and use of email via our online database allows us to combat this threat of
availability in order to reach our customer at any time and in any place.
o Promotion:
 Our most important promotional tactic is to focus on travel venues such as
airlines and subways in busy urban areas. This establishes our brand as an
innovative and portable technology that can simplify a traveler’s lifestyle and
add convenience while maintaining the intimacy of reading.
Product:
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The Nook Color is an advanced eReader but a weak tablet.
The Nook is modern and non-traditional for someone who wants to experience books in a
new way, without all the extras of an expensive tablet.
The Nook is perfect for the consumer looking for an interactive reading experience, but may
not be right for the more technology-savvy consumer as it may fall short in some categories
when compared to more advanced tablets. With only WiFi connectivity the user is limited,
versus a tablet with 3G continuous access. The 8-hour battery life is adequate but is not as
long as similar devices. The screen’s color display is aesthetically pleasing to the eye but
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may be more difficult to read in harsh lighting conditions when compared to the eInk used in
non-color eReaders.
Brand Analysis
o USP
 Versatility
o Position
 The Nook Color had a successful launch by exceeding pre-order sales
expectations.
 Over one million Nook Colors were purchased on Christmas Day 2010,
proving that the new Nook Color is a strong competitor against other
eReaders.
 The Nook Color is one of the most advanced eReaders.
o Perception
 Barnes & Noble has known presence in traditional reader’s minds, which will
translate over to the success of the Nook Color.
 Via the brand loyalty continuum, the product was quickly accepted in the
eReader market and is becoming preferred among other eReaders.
 The Nook Color is known as being fun and simple with a memorable name.
o Equity/Loyalty
 Barnes & Noble holds 25 percent of the eReader market.
 The Nook brand alone has not yet been established and is in the incline of its
product lifecycle.
 The Nook Color does not have much brand equity, but is working towards
consumer loyalty based on its association with Barnes & Noble.
 The Nook Color has the distribution power of Barnes & Noble (the largest
bookseller in the world with thousands of publishing partners, a Fortune 500
company, operating 778 stores in 50 states).
 Sales are anticipated to grow with the release of the Color’s own Android App
Store released in the first quarter of 2011.
o Physicality
 Resembles a tablet
 Color technology
 Thin/compact/portable
 Stylish and sleek design
Competition:
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Nook’s reputation is based on a previously established relationship with Barnes & Noble,
known to be a large distributor of books, magazines and other forms of literature.
The Nook Color will be known for its unique color feature, portability, versatility and
interactivity. We wish to create individual brand equity as a new product, while relying on
and maintaining the equity gained from its association with Barnes & Noble.
The Nook Color stands at the front of the line with today’s competing eReaders. Although it
is advanced in the area of eReaders, it is inexperienced in the area of the tablet. For this
reason, the indirect competition becomes the primary competitors. Apple is the biggest threat
to the Nook Color, and the iPad and iPad2 have the potential to make the Nook Color less
than significant with the tablet’s growing popularity.
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As a high quality product, the Nook Color is a top eReader with innovative color.
The Nook Color is reasonably priced because it is more expensive than lesser eReaders, but
very affordable when compared to expensive tablets.
The Nook Color is a tool and resource for readers on the go for travel and entertainment
purposes.
The Nook Color features a digital library, so there is never any worry about losing a book
again because your entire library is automatically stored in an electronic database for
safekeeping.
Direct Competition:
o New and innovative eReaders are important competitors. Keeping up with the market
and establishing this product as a top, innovative product compared to its competition
is our main goal. When thinking of eReaders, the target audience should instantly
think of the Nook Color.
Indirect Competition:
o Tablet computers pose an even greater threat to our product than that of other
eReaders because of their growing popularity and extreme versatility. They have a lot
to offer so we must focus our attention on our target market of the average reader, not
necessarily the technologically advanced.
Primary Competitors:
o Amazon Kindle
o Borders Kobo
o Samsung iPapyrus
o Sony Reader
o Apple iPad and iPad2
o Galaxy
o Tablet computers in general
Secondary Competitors:
o Bookeen Cybook
o Condor Technology eGRiver
o EBS Technology Agebook eBook Reader
o Ectaco eBook
o Endless Ideas BeBook
o enTourage edge
o FnacBook
o Foxit Reader
o eSlick
o Hanvon WISEreader
o Interead Cool-ER
o iRex Digital Reader
o iRiver Story
o Italica GmbH Paperback
o Jinke Hanlin V2
o Kogan eBook Reader
o Kolporter eClicto
o Notion Link Adam
o Onyx International Boox
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o Pocketbook Pro
o Spring Designs Alex eReader
o Stereo International ES600
o Velocity Micro Cruz
o World Electronics Boox
Perceptual Map:
o Our product is considered modern and cool based on its innovative technology, which
is in direct relation to our target audience.
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Problems and Opportunities:
Problems:
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The Nook Color does not have as high of brand equity as Amazon’s Kindle.
The Nook Color does not have the text-to-speech capability like Amazon’s Kindle.
eReaders have yet to become the preferred reading method of choice.
The Nook Color is at the acceptance level in the brand loyalty continuum. To surpass the
Kindle, the Nook Color will have to rise to the preference or insistence level.
Opportunities:
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The Nook Color has many features that Amazon’s Kindle, its main competitor, does not
have. For example, the Nook Color has a touch screen stylus, a card reader slot, an internal
storage of 8 GB as opposed to 4 GB and is library compatible. This is comparing the latest
versions of the Nook Color and the Kindle 3.
The Nook Color can be purchased in-store or online, whereas the Kindle can only be
purchased online.
The Nook Color appeals to our multi-tasking society because of the many features, including
wireless Internet access and access to books, newspapers, magazines and other reading
material.
The Nook Color can be used for more than just reading books. Magazines, newspapers and
other publications can be read with the Nook Color. It also has wireless Internet access, so it
has some of the capabilities of a tablet computer.
The Nook Color is launching textbook eBooks in 2011, so college students will have a more
affordable way to purchase textbooks through their eReaders.
SWOT Analysis:
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Strength
o The Nook Color’s color feature makes it an innovative leader in its category.
o The convenience of an online shopping feature makes it optimal for a busy lifestyle.
o The small size and light weight makes it portable for those on the go.
o The versatility in the Nook Color’s uses, from Internet to digital files, makes it a great
choice for those that need more technology but without the hassle of a laptop or
expense of a tablet.
o It is reliable in the fact that the user’s books are stored in an electronic library that is
backed up on the web and cannot be harmed like traditional books.
Weakness
o For many, it is a luxury item and not a need.
o The competition against tablets could make success difficult in the long run. As tablet
technology becomes more available, the price will be more competitive and might
make eReaders a lost technology.
o Barnes & Noble is not known for modern technology.
o Many people are comfortable with the idea of reading a physical book and may find it
difficult or unappealing to switch to digital.
o 8-hour battery life is not as long as many competitors.
o WIFI connectivity is limited, versus a tablet with 3G continuous access.
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Opportunity
o Bookstores are going out of business, but because of the popularity of portable
devices, the Nook Color can compete well with Kindle on usability and compete well
with the iPad price.
o Print is slowly becoming obsolete.
o There has been an increase in eBook sales, making up 10 percent of total book sales
(up from 5 percent or less in 2009).
o There has been an increase in eReader sales, with sales at greater than 6 million (up
from estimated sales of 3 million in 2009).
Threat
o Apple iPad and iPad2
o Amazon Kindle
o Multipurpose devices versus dedicated eReaders.
o WIFI connectivity limits the Nook Color, versus a tablet with 3G continuous access.
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Target Market Profile:
Demographic:
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Male and female
Primary 30 – 45
Secondary 18 – 25
Middle class to upper-middle class
College educated
Psychographic:
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Readers of books, eBooks, magazines and newspapers.
They are family oriented and parents of children.
They are travelers and end up multitasking while in the car or on the bus, subway or airplane.
Those converting to digital want to turn their library into a digital database.
Geographic:
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Establish national brand awareness.
Focus on the top 10 urban areas, because these areas are full of people traveling and
multitasking.
Focus on suburban areas because these are composed of families, including mothers and
fathers.
Niche / Segment:
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Young children may ask parents for the Nook Color because of color quality, interactivity
and gaming possibilities, which makes reading fun.
College students will purchase the Nook Color to easily store and transport textbooks while
also saving money, because there is not the hassle of selling books back at a huge loss.
Airport travelers may be interested in the Nook Color because of the displays and rental
booths to be set up in airports. More specifically, to introduce the Nook Color to frequent
fliers and families on vacation.
Usage Pattern / Time:
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Advertise for consumers on the go via car, bus, subway and plane.
Advertise that the Nook Color can be used on the way to work and class because it relates to
lifestyle benefits of being simpler, easier and faster.
Advertise with Oprah’s magazine during the spring and summer, when magazine sales
usually increase and less people are inside watching television.
Advertise with Oprah’s television program in fall and winter when people are inside more
and watching TV because of the weather.
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Marketing and Advertising Objectives:
Objectives:
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Introduce new product.
Educate and stimulate trial.
Increase Nook Color and eBook sales.
Maintain Barnes & Noble customer base while repositioning to gain individual brand
identity, establish the Nook Color as an innovative product and gain brand loyalty.
Encourage repeat customers and persuade new customers.
Communication Budget:
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$12 million.
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Marketing Communication Strategy Overview:
Promotional Strategy:
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Emphasize sales promotions during slow periods to build product awareness when not
reaching the potential target audiences.
Rational:
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Sales promotion is required to boost sales during slow periods when the Nook Color is not
reaching sales potential. Also, continue to advertise during peak sales seasons to maximize
profit margins when consumers are buying at higher rates.
Objective:
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Educate Consumer
o Use the Barnes & Noble database to inform loyal customers of the Nook Color and its
capabilities.
o Provide simple, free, online tutorials on how to use the Nook Color and its
capabilities.
o Allow consumers to come into any Barnes & Noble location, use the product and ask
a representative any questions they might have.
Stimulate Trial
o Provide promotional offers for free monthly eBooks from Barnes & Noble and
discounts via email on popular and up-and-coming books.
o Provide rental kiosks at airports to allow fliers to familiarize themselves with the
product during the flight for a small rental fee.
Build Brand Awareness
o Market the product nationally at all Barnes & Noble locations and also via the
Internet.
o Use travel and transportation ports to advertise the product and spread the word on its
innovative technology and portability.
Establish Brand Loyalty
o Protect the intimate experience of reading.
o The Nook embodies the place where one’s experience of reading is most enhanced.
o Reading is an emotional experience; we want to establish this same emotional
connection with the Nook brand as well.
Public Relations/Product Publicity
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Advertising:
o Oprah Magazine Spring/Summer, Oprah Television Fall/Winter
o Press Release - New York Times Newspaper Announcements
o Airplane Television Ads
Sales Promotion:
o Coupons and discounts through email.
o Use frequent flier miles towards the purchase of a Nook Color.
Events/Sponsorships:
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o On college campuses, show the benefit of digital textbooks, such as portability and
cost.
o At Barnes & Noble events, introduce the Nook Color to consumers and educate the
same consumers about the Nook Color.
Direct Marketing:
o Airport Nook Color rental and displays
o College campus events
o Barnes & Noble events
Relationship Marketing:
o Build relationships by establishing a reward/point system using the existing database.
o Provide a free book, chosen monthly, to read when consumers visit Barnes & Noble.
o Offer a free personalized case, with the choice of color, to create an emotional
attachment to the Nook Color for consumers.
Database Marketing:
o Use our established Barnes & Noble Cardholder Database.
o Offer sale pricing, coupons and special monthly offers.
o Database marketing is a quick, easy and inexpensive way to reach our current and
potential consumers.
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Advertising Strategy:
Creative Strategy:
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Objectives:
o Reach the technologically savvy readers, from students to young families, and
educate them on how the Nook Color is different from other e-readers, persuade or
change their opinion to the Nook Color being the future of reading, and stimulate trial
in stores or online to potentially lead to a sale.
Strategy:
o Through TV, magazine, outdoor, Internet and sales promotions, the advertisements
will show how the Nook Color is versatile. It is an enjoyable way to not only read
books and magazines, but to listen to music and surf the web. It will display the ways
Barnes & Noble has taken the eReader to another level and out done the competition.
o While versatility could lend the Nook Color to compete with other electronics other
than eReaders, such as the iPad, we will focus mostly on the use of the Nook Color
for readers rather than technology experts. It is the iPad with less hassle for those who
don’t need a second computer.
o There will be two themes for two audiences. For students, the focus will be on saving
money on textbooks and the ability to go online. For young families, the focus will be
on portability and kid-friendliness.
Tactics:
o See appendices, page i.
Media Strategy:
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Appeal to our audience using the media outlets that best fit into their lifestyle.
Media Objectives:
o Create awareness of the product through advertising. We will inform consumers how
the Nook Color works, what it can do, where it can be purchased and why one should
be bought.
o Show versatility of the product by showing all that it has to offer. It is easy to
download books, magazines and newspapers within minutes. It is a product that
consumers of all ages can use.
o Stimulate trial by having consumers try our product. By going to college bookstores,
airports or Barnes & Noble, consumers can try the Nook Color in store. Offering
coupons off of the price of the Nook Color or other Barnes & Noble products can
influence consumers to try the Nook Color.
Media Strategy Elements:
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Target Audience:
o Same as the target audience for the campaign. More specifically:
 Men and women
 Ages 30-45
 Family-oriented
 Middle class
 College educated
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 On the go lifestyles
 Technologically savvy
Media Classes:
o Media outlets
 Television
 Print
 POP displays
 Billboards
 Internet
o Radio advertisements are not used because the Nook Color is a visual product. It
would not make sense to advertise it in such a medium where you cannot see the
product that is being described.
Media Mix:
o Most of the budget is invested into television and print advertising. The Nook Color
is a visual product. It can be described, but without the visuals it is hard for
consumer’s to get a sense of all that it has to offer. Television ads allow us to use both
visual and sound to show consumers how the product works. Since the Nook Color is
an eReader, our target audience can also be best reached through print advertising.
Media Timing:
o The pulsing approach will be used to advertise the Nook Color. Between all of the
different advertising mediums chosen, there is continuously some type of advertising
for the Nook Color.
Media Tactics:
o Television
 Today Show
 Oprah
 Glee
 Food Network
 30 Minute Meals
 Travel Channel
 No Reservations
 60 Minutes
 Dancing with the Stars
o Print
 “O” Oprah Magazine
 Parent’s Magazine
 Travel and Leisure
 Better Homes and Garden
 Time Magazine
 New York Times
 USA Today
o Retail
 POP Displays
 Airport Terminals
 Barnes & Noble
 College Campus Barnes & Noble Bookstores
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o Outdoor
 Buses
 Interior
 Exterior
 Subway
 Interior (in trains)
 Exterior (in stations)
 Outdoor Bilboards
 Interior Airport Signs
o Internet
 YouTube
 Facebook
 New York Times
 Oprah
o Sponsorships
 Booths at College Events
o Events
 Barnes & Noble Locations
o Direct Mail
 Email Barnes & Noble databases
Media Calendar:
o See appendices, page ii.
Media Budget Summary:
o See appendices, page iii.
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Integrated Communications:
Direct Marketing:
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Barnes & Noble will be used as an outlet to sign up Barnes & Noble members and contact
existing members through email to promote the Nook Color. For example, Barnes & Noble
members will be offered a free “book of the month” for their Nook Color. It will also be used
for educating and updating members about the Nook Color and its features.
Sales Promotion:
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Point of purchase displays will continue in Barnes & Noble stores and they will be added in
airports and university bookstores.
The ability to rent a Nook Color on long flights on specified airlines as a way to stimulate
trial.
Barnes & Noble members will receive coupons when purchasing a Nook Color for content
purchases.
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Campaign Evaluation:
Primary Research:
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Send out questionnaire to the existing database composed of the customers and reward
members of Barnes & Noble.
Offer a 10 percent off coupon, redeemable at Barnes & Noble locations, to those who
complete and submit the questionnaire.
Compare before and after results to see how to better advertise the Nook Color.
Questionnaire:
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Are you familiar with eReaders?
If so, what types of eReaders have you heard of?
Have you heard of the Nook Color by Barnes & Noble?
Do you “need” a Nook Color?
Do you “want” a Nook Color?
Where would you like to go to buy a Nook Color?
Is it important to see, touch or feel the Nook Color before purchasing it?
How do you like to be communicated to?
What do you like about the Nook Color?
What price range would you pay for a Nook Color?
Would you try the Nook Color if there were a money back guarantee?
Would you try the Nook Color with a 30-day free trial?
Where would you use the Nook Color?
Would you be interested in more information about the Nook Color?
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