Amazon Kindle Fire HD
Amazon Kindle Fire HD
Integrated Marketing Communications Project
BMGT450: 0201
December 4th 2012
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Amazon Kindle Fire HD
Part I - Problem and Objective
The product that we have chosen to analyze is the Amazon Kindle Fire HD. This product is
a mini tablet computer that was created and developed by the prestigious e-commerce
organization, Amazon. The Kindle Fire HD is the second generation of the Kindle Fire and is
among the leaders of the tablet market. This upgraded version provides a powerful tool for
enhancing a user’s productivity, online experience, e-reading capability, entertainment, as well as a
variety of other functions.
We have determined the target market of this communication to be baby boomers and
traditionalists, ages 48 and older. This target market accounts for 76 million people, or 24% of the
population. They are looking for a high quality product with easy accessibility to a wide range of
additional content, products, and services. Currently, Amazon has focused exclusively on targeting
their many loyal consumers and attempting to create a need for them to purchase the newest
addition of their Kindle Fire tablet line.
According to Amazon.com, the first introduction of the Kindle Fire HD (the latest version)
was announced on September 6, 2012 and the product was made available to the market on
September 14, 2012. Although Amazon has introduced their new Kindle Fire HD fairly recently,
their presence in the table market since 2011 with the original Kindle Fire represents their maturity
in the industry. Amazon stands as one of the few companies to release a tablet since the market’s
conception.
The Kindle Fire HD’s main competitors are Apple’s iPad and Samsung’s Galaxy Tab 10.1.
Other noteworthy competitors include Google’s Nexus Tablet, Barnes and Noble’s Nook Tablet,
RIM’s Blackberry Playbook, and Lenovo’s Ideapad. From the market’s origination it is clear that
tablet market is experiencing rapid change and growth. According to Mintel’s report on Tablets in
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Amazon Kindle Fire HD
April 2012, estimated 2011 sales suggest that the tablet market has more than doubled in size, from
$6.7 billion in 2010 to $13.9 billion, in manufacturer sales (Hulkower, 2012). From these statistics
and supporting information, it is evident that tablets are quickly becoming primary substitutes for
PCs and notebooks. Amazon uses its loyal customer base and comparatively low prices to
command its share of the tablet market.
According to “Kindle Fire Marketing Strategy: Amazon’s Big Bet,” Amazon is using their
tablet line to spark sales in it’s media content. The tablet is produced with little profit because
Amazon sees greater opportunity in selling content instead of selling hardware. (Hickie, 1).
Because Amazon offers such a variety of content, this strategy makes sense. However, if Amazon
would like to maintain its market share, or even increase it, then it must change its target market
and reflect the new market’s needs in its advertising. Baby boomers and traditionalists have shown
a desire to become involved with new technologies and are looking for access to knowledge
(Talbert, 1). Knowledge can take the materialistic shape of books, publications and movies as well
as the intangible form of communication and connectivity with family and friends, all of which can
easily be accessed from the adoption of the Kindle Fire HD. This desire for knowledge through
content and connection must be reflected in marketing communications in order to show the target
market that the Kindle Fire HD is the product for them.
The tablet has become a popular device to help revolutionize the lives of a wide variety of
consumers and has been denoted as a status symbol and a highly desired product. Our campaign
aims to reposition the Kindle Fire HD in order to target baby boomers and traditionalists and
change their attitudes to show that the Kindle Fire HD is the tablet for them and reflects their
specific needs. A revamped integrated marketing communications campaign can help to convey
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Amazon Kindle Fire HD
the Kindle Fire HD as a strong competitor in the tablet industry as well as a viable option for the
company to maintain their market share in the rapidly growing tablet market.
Part II - Situation Analysis
In recent years, the competition within the tablet market has increased considerably. The
majority of major electronic companies now offer some version of a tablet; Apple’s iPad and
Samsung’s Galaxy Tab 10.1 have provided the greatest competition to Amazon’s Kindle Fire HD.
Among the competitors, each offers and conveys a variety of advertising messages to attract
consumers.
With a heavy first mover advantage in the tablet market, Apple’s iPad has been the clear
market leader since its introduction in 2010. One of Apple’s competitive advantages is its premium
brand image, which is attractive to a myriad of consumers. Apple pride itself on offering the best
tablet on the market. Apple’s message to its potential consumers revolves around utilizing a
superior Apple product that offers over 750,000 applications of services and content through its
iTunes store. Although apps are a great way for Apple to make a profit, they are not as concerned
with them because they are making a large amount of profit on the product itself. While other
tablets try to compete against others in their advertising campaigns, Apple only focuses on itself.
With regards to the physical advertising message, Apple never uses the term tablet anywhere in
their marketing, preferring to present its products as magical items that are not held back by any
type of categorization (Hulkower, 2012). By keeping the appeal crisp and clear they focus on the
ease of the device and the beautiful hardware. Physical features such as Retina display and
software features such as FaceTime, iCloud, iSight camera, and Ultrafast 4G LTE Wifi speed are
emphasized to convey to consumers that the iPad is the most advanced product within the tablet
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Amazon Kindle Fire HD
market (The Teardown: iPad, 2012). Apples main communication techniques for the iPad have
revolved around trendy 30 second TV commercials with additional content available on YouTube.
They rank 1st in search engine searches and have online advertisements and print advertisements
(Hulkower, 2012). Additionally, the iPad’s advertising elements are extremely effective and target
a large scale demographic from children to baby boomers. As a premium product with
distinguished physical and software features, Apple’s iPad will remain a high-quality tablet player
for years to come. Samsung’s Galaxy Tab 10.1 has also made waves since its introduction in 2010.
Samsung’s advertising message for its Galaxy Tab 10.1 surrounds a faster, lighter, and
thinner tablet with a focus on delivering entertainment. The Media Hub, which is comparable to
Apple’s iTunes, is a focal point of advertisements that emphasizes and portrays the thousands of
TV shows, movies, games, and music that are available to customers (Channel Insider, 1). The
Galaxy Tab 10.1 is positioned as a quality option in the tablet market that will provide users with
premium content with over 450,000 applications. Similar to its main competitors, Samsung has
also turned to 30 second TV advertisements and YouTube videos for an online presence. These
commercials usually focus on parents, professionals, and even children utilizing a lightweight
mobile tablet for both professional and leisurely use. Recent commercials have denoted an upscale
consumer product that is appropriate for the business environment (Hulkower, 2012). In addition,
online, search engine marketing, and print advertisements are all utilized. Furthermore, the
structural elements of the advertisements are also effective in emphasizing Samsung’s message by
portraying the quantity of content available for entertainment to potential consumers. This is
evident, as the Galaxy Tab 10.1 has claimed the second highest market share at 18.4%. Amazon
has also taken a similar approach to its advertising message by focusing on its content.
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Amazon Kindle Fire HD
Amazon’s simplified advertising message for the Kindle Fire HD focuses on price and
content. As the lowest-priced tablet among the competitors with a starting price of $199,
Amazon’s advertising message to potential customers focuses on offering the most reasonably
priced tablet with access to the multitude of Amazon content that can improve a customer’s life. A
main feature on Amazon.com is the ability to compare the iPad Mini to the Kindle Fire HD with
the tag line “Much More for Much Less.” This side-by-side comparison allows consumers to
compare their options while keeping the price tag at the top of their minds. With regards to
capabilities, the Kindle Fire HD shares many of the same characteristics as its competitors such as
Wifi, web chatting capabilities, and access to e-reading, online, and entertainment content
(Friedman, 1). The Kindle Fire HD has done an excellent job of establishing a new sales channel
for Amazon’s e-commerce business and platform to facilitate the growth and dominance of its
content and cloud computing services. Moreover, the Kindle Fire HD has been advertised through
30-second TV commercials, YouTube videos, and print advertisements. They have also been
extremely successful with search engine searches, ranking second right behind Apple (Hulkower,
2012). Emphasizing “Much More for Much Less” has been effective in garnishing attraction to the
cheap price for a fully functional tablet. In addition, the tablet market has influenced consumer
behavior and created new trends among the electronic market. We plan on utilizing the current
concept of “Much More for Much Less” and taking it to a new level, emphasizing how the Kindle
Fire HD offers more knowledge in the form of its content and connect-ability and adding to that an
emotional appeal to affect our target market.
To launch Amazon’s newest product, Kindle Fire HD, the company adopted the slogan,
“reinvented normal.” positioning their product as the new norm for entertainment. Unlike other
tablets that have taken away from the novelty of reading, the Kindle Fire HD prides itself on being
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Amazon Kindle Fire HD
a book of the 21st century. They focus in on being an affordable new product that allows their
users to access Amazon’s web services and media offerings. When other tablets are focused on the
unlimited applications that can be downloaded, Amazon leaves that part in the dark. Instead, they
focus on the access their consumer has to Amazon’s content.
With a high degree of interactivity, flexibility and portability, digital media has quickly
gained popularity and become an important factor in how US consumers spend their time.
Electronic manufacturers have sought to capitalize on this trend by creating a range of new devices
to access these media, which in some cases have further influenced and altered consumer behavior
(Hulkower, 2011). E-Readers and tablet’s are two examples of game-changing devices that have
altered consumer behavior. In this regard, e-Readers have caused many consumers to rethink their
relationships with books, magazines, and newspapers – reading formats that have been standard for
decades. Moreover, tablets seem to be moving beyond meeting various PC functions and are
instead serving as hybrid devices that can take on a wide range of capabilities from media players
to phones to gaming devices and beyond. With a rich array of installable apps and web content,
consumers are using tablets as highly customizable tools that can adapt to their precise needs.
Since April 2010, tablets have seen an incredible rise in sales, with one in four respondents
surveyed in a Mintel survey owning a tablet in their households as of January 2012 (Hulkower,
2012). Additionally, the highest penetration is seen among 25-34 year olds with 35% owning a
tablet and among households with greater than $150k in annual income with 44% of them owning
a tablet. At the same time, even the oldest age groups and lowest income groups show healthy
levels of adoptions: 12% of tablet owners come from annual household incomes of less than $25K
and 13% of tablet owners are members of the baby boomers and traditionalists generations
(Hulkower, 2012). Furthermore, age has shown some significant trends with regards to spending
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Amazon Kindle Fire HD
and planned purchases. In this regard, 18-54 year olds are more likely to plan to spend more than
$400 on their tablet. Younger age groups may be more in touch with product pricing and more
intent on purchasing Samsung’s Galaxy Tab 10.1 or Apple’s iPad, two of the highest-cost tablets
on the market (Hulkower, 2012). This leaves the Kindle Fire HD a prime position among older
markets. Baby boomers and traditionalists have shown a clear interest in owning tablets; this a
major opportunity for the Kindle Fire HD to appeal to the needs of the older generations directly.
With regards to trends of market sales, the tablet market looks extremely promising. For
example, sales of tablets in 2012 will soar to 126.6 million units, up 85% from 68.4 million units
in 2011 (The Tablet Revolution, 2). The impressive performance of tablets this past year builds on
an even more robust 253% explosion last year from sales of 19.4 million units in 2010, according
to an HIS iSuppli Worldwide Tablet Tracker report (The Tablet Revolution, 2). The positive trend
of sales will only continue, as HIS analysts forecast tablet sales will rise another 63% next year, on
their way to 360.4 million units by 2016 (The Tablet Revolution, 2). Since the tablet market is
continuing to grow, there is an opportunity for the Kindle Fire HD to grow with it. By the Kindle
Fire HD keeping a tight grip on its 9% market share as the market grows, Amazon will profit from
the increased sales that come with maintaining market share in a growing market.
In January 2012, Apple CEO Tim cook said, “I truly believe, that there will come a day
that the tablet market in units is larger than the PC market. (Kosner, 1). As this trend becomes a
reality, the Kindle Fire HD, iPad, and Galaxy Tab 10.1 have all began to focus on more personable
and customized tablets that are able to function as a PC but also focus on enterprise, education,
printing, and entertainment. Apple’s iPad was the first tablet to feature a dual webcam for
FaceTime and picture taking capabilities. Since then, both Amazon and Samsung have revamped
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Amazon Kindle Fire HD
their tablets with similar features. It is expected that these companies will continue to rapidly
retaliate with their hardware and software features, each trying to one-up the other.
With regards to market share and sales, Amazon’s Kindle Fire HD sits in third at 9% of the
market, Samsung’s Galaxy Tab 10.1 sits in second with 18.4% of the market and Apple’s iPad
commands a dominant 50.4% of the market share (Hulkower, 2012).
With no definite sales figure given for the fiscal 2012 year, sales of tablets for the given
competitors was approximated by multiplying the total number of tablets sold this year by the
market share. Thus, Apple’s iPad sales for 2012 have been 63 million units (50.4% x 125 million),
Samsung Galaxy’s sales have been 23 million units (18.4% x 125 million units), and Amazon’s
Kindle Fire’s sales have been 11,250,000 (9% x 125 million units).
Part III – Recommendations
The American Marketing Association defines Integrated Marketing Communication
(IMC) as “an approach to brand communications where the different modes work together to
create a seamless experience for the customer and are presented with a similar tone and style that
reinforces the brand’s core message.” IMC uses a wide range of promotional tools that work
together as a single unit to increase cost effectiveness and brand exposure. The objective for
Amazon’s Kindle Fire HD is to maintain its current share of 9% within the tablet market. As
noted earlier, with a rapidly growing market size within the tablet industry and the ongoing
proliferation of competitors and emerging products, Amazon must develop the proper IMC
approach and promotional tools to achieve this objective of sustainability.
The objective of our integrated marketing communications will be affective association; the
aim is to get the target market to feel good about the brand and link the product with good feelings.
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Amazon Kindle Fire HD
We feel creating an emotional connection is the best way to show our target market what the
Kindle Fire HD offers to them personally. We would like our communications to speak not only to
the vast amount of content available but also how this content translates to knowledge and
connections that may be formed with friends and family as a result of using the device. A positive
strategic implication of this type of affective association advertising is that it may perform better in
a cluttered media environment (O’Guinn, Allen, and Semenick, 2012). With the growing tablet
market, tablet producers are increasing their advertising; using feel-good advertising will help the
Kindle Fire HD to stand out. According to the textbook, a negative strategic implication is that
feel-good advertising may generate competing thoughts and connections, causing consumers to
think about their lifestyle instead of the brand and product (O’Guinn, Allen, and Semenick, 2012).
However, our advertising aims to show the opportunity to make connections with friends and
family so if a consumer does feel they must reflect on their current lifestyle, we hope to show them
how the Kindle Fire HD can improve the way they connect and absorb knowledge. We have come
to the conclusion that with the content provided by the Kindle Fire HD, we are really providing our
customers with knowledge; this will be a focal point in our advertising.
We have chosen to make our main tagline “More Knowledge. For Less.” This tagline has
been chosen with regards to our conclusion that content is knowledge. We have chosen to portray
this by using additional words along with our tagline to emphasize what the Kindle Fire HD offers.
We will change the additional words included in the advertisement based on which medium is
being used and what is being illustrated. As a result of our advertisements focusing on an
emotional appeal, we will include words such as “Family,” “Tradition” and “Possibilities”. We
also will utilize words such as “Features,” “Content” and “Power” to denote that the variety of
features offered as well as that content is knowledge and knowledge is power.
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Amazon Kindle Fire HD
The integrated marketing communications will be directed towards our target market, baby
boomers and traditionalists. Baby boomers and traditionalists account for 24% of the US
population or 76 million people. This group has more discretionary income than any other age
group and holds 70% of disposable income. The low-price point of the Kindle Fire HD makes it
desirable for this group and will potentially be an impulse purchase with those members of our
target market who have a large amount of disposable income.
Currently, 13% of our target market has already adopted tablet technology (Hulkower,
2012). We see this as an opportunity to capture more of our target market and convert them to
Kindle Fire HD users. According to the “Tech Guide for Baby Boomers,” social networking use
among older boomers has grown by 88%. Boomers are adopting social networking tools to “not
only connect with friends and family, but to solve their own individual problems and interests.”
Additionally, the guide suggests that baby boomers choose tablets as a means for their
technological needs because of their wide screens and ease of use. The article cites the Apple iPad
as a viable option; however, we can use this insight as an opportunity to show that the Amazon
Kindle Fire HD is the best way to connect to social media tools and other applications at a much
lower price.
We want to show our target market that the Kindle Fire HD can be the perfect gift for
parents and grandparents in the sense that it has a variety of content including books, movies, TV
shows, games and applications in addition to online shopping, E-Mail and Social Media. We have
determined a key insight to be that our target demographic isn’t the average technology user. Since
technology has become the most widespread form of communication we must emphasize that our
tablet is an easy way to keep in touch with the updates that family and friends post online and an
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Amazon Kindle Fire HD
easy way to carry around a vast amount of content. This all translates to knowledge available at an
extremely reasonable price.
Our target market has a desire for knowledge that can be simply obtained through the use
of the Kindle Fire HD. Knowledge can be achieved through content offered on Amazon’s website.
As the primary readers of newspapers and the primary watchers of television, the Kindle Fire HD
provides an opportunity to access these mediums easily and electronically. Additionally, our target
market will see their tablet as a gateway to knowledge, in the form of books and applications, to
stimulate their minds. Knowledge can also be achieved through connection and communication.
Our target market expresses a desire to stay connected to family and friends, whether in the same
room or at a distance, which can easily be achieved using the Kindle Fire HD. We have realized
our target market’s desires and needs and now our aim is to show that these needs are best satisfied
by purchasing the Kindle Fire HD.
According to the textbook, “Advertising and Integrated Brand Promotion” some of the
most prominent tools marketers use for IMC are: advertising, sales promotion, internet
advertising, television advertising, outdoor signage, and other mediums. Given the nature of the
Amazon Kindle Fire and the target audience, Amazon must incorporate a number of these tools
to make this upcoming IMC expenditure worthwhile. After a closer look at our target market’s
day-to-day exposure to different media sources provided by MediaMark, we have been able to
draw conclusions and rationalize the spending and proper allocation amongst each promotional
IMC tool. Given the data provided in Exhibit 3 entitled “MediaMark Fall 2011 Media”, our
promotional tools will include: print, radio, television, outdoor billboards and signage,
web/display banners, search engine marketing (pay-per-click), and support media.
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Amazon Kindle Fire HD
Our total IMC expenditure for this upcoming year for the Kindle Fire HD will be $312
million. We calculated this budget using comparable ratios from our competitors based on their
disclosed data. Apple sold a total of 68 million iPads last year; the average price for each iPad
was $575. The average IMC budget for a company in the “Personal Computer Manufacturing
Industry” according to Hoovers Industry Analysis as a percentage of revenue was .08. Because
there is currently no “Tablet” industry, we have considered Apple a member of the “Personal
Computer Manufacturing Industry”. Therefore, their total estimated IMC budget was $312
million. We believe that Amazon must follow a similar strategy in order to sell 19 million tablets
because the Kindle Fire HD is not as well known as the iPad. With this budget, we have
calculated that we would be able to reach 20,070,474,000 impressions and 7,820,000 web-clicks
through our chosen media sources. (See Exhibit 4: IMC Budget and Objectives) Given this
information and the total number of impressions we have calculated from this budget, we believe
that our objective of selling an addition 19 million Kindle Fire HDs to maintain our market share
of 9% is attainable. According to the textbook, the “effective frequency is the number of times a
target audience needs to be exposed to a message before the objectives of the advertiser are met
– either communication objectives or sales impact” The book further discloses that the effective
frequency by advertisers is commonly placed in the range of 2-9 exposures (O’Guinn, Allen, and
Semenick, 2012). With the 20,070,474,000 exposures for the 76 million individuals within our
target audience, we have exceeded the number of exposures to a great extent. We feel that
because we have exceeded the expectations of effective frequency benchmarks, we will be able
to maintain and if not exceed our objective of maintaining a market share of 9% and selling a
total of 19 million tablets. It is important to note that although we are specifically shifting our
target market to focus significantly on baby boomers and traditionalists, a great deal of our
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Amazon Kindle Fire HD
impressions will naturally be of other audiences as well. Furthermore, the additional sales in
Kindle Fire HD’s will also impact the sale of Amazon content, greatly effecting overall profit
and sales. The allocated budget and further details as to why each specific media tool was chosen
are justified and explained as follows:
We chose to allocate 20 percent of our budget to print media because of the pivotal role
that print media plays in the lives of baby boomers and traditionalists. While younger
generations begin the day by checking their phones and reading their email, reading the morning
newspaper is still commonplace among our target market. For that reason, we will spend
approximately $62,560,000 to advertise through print media. The main publications we will
utilize are The Wall Street Journal, USA Today, The Financial Times, and The New York Times
because readers of these newspapers tend to be well-educated, older folks with above-average
disposable income. Additionally, the fact that they are already reading these publications lends
credence to our belief that this demographic will access -- and pay for -- content on the Kindle
Fire HD after purchasing the device as a portal to do so. In addition to newspapers, we will
advertise in magazines such as AARP Magazine, which has a targeted demographic of older
Americans.
These advertisements will include our main strategy of an emotional appeal to cause our
target demographic to connect with the Kindle Fire HD. Exhibit 1.a. displays a large family
gathered around a Kindle Fire HD, viewing content and includes our tagline “More Knowledge.
For Less.” This advertisement includes the words “Family” and “Tradition” to illustrate that the
Kindle Fire HD and the content that can be access as a result can be used to connect with family
and create new traditions. The tagline “Starting at $199” will also be featured in the
advertisement because we would like to emphasize the low-price point.
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Amazon Kindle Fire HD
We have determined that it is appropriate to apportion 7.5% of our IMC expenditure to
radio media. Radio offers a platform for Amazon to reach a wide range of consumers, through a
variety of different options such as local and national broadcasts and through stations with
different characteristics (Networks, AM, FM, Satellite, etc.). Radio also provides key benefits in
regards to cost, reach and frequency, target audience selectivity, flexibility and timeliness, and
creative opportunities (O’Guinn, Allen, and Semenick, 2012). Figures provided within
MediaMark cite that in addition, baby boomers and traditionalists actively listen to the radio
daily. For these reasons, radio is an instrumental part of our selected IMC mediums. MediaMark
provides information that our target audience uses radio most notably during weekdays between
the hours of 6:00am - 10:00am (morning drive time), 10:00am - 3:00pm (daytime), and 3:00pm 7:00pm (afternoon/evening drive time). We have recognized the affordable pricing in regards to
production costs with radio advertisements and therefore have allocated the majority of our
7.5%, $31,271,000, to media costs. This allocation will assist our ability to position our radio
advertisements to the above timeslots during the weekdays throughout the year. Though 7.5%
does not seem like an overwhelming percentage of our strategy, because of the low production
costs and generally low exposure costs, we are able to produce the advertisements necessary with
this amount.
Our radio advertisement will be approximately 30 seconds long and emphasizes both an
emotional appeal and content. As can be seen by the script in Exhibit 1.b., we have included our
main tagline “More Knowledge. For Less.” as well as “Starting at $199.” We have also used
specific examples of content and ways to connect using the device to directly affect our target
market.
In regards to the promotional tool of television, we feel it is appropriate to allocate 50
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Amazon Kindle Fire HD
percent of our budget towards to this traditional media tool. According to MediaMark, our target
market is comprised of avid television watchers. We plan to use television in a way that we will
be able to reach the number of impressions we would like through this promotional tool. (See
Exhibit 4: IMC Budget and Objectives) There are many advantages to allocating our budget with
a high percentage towards television. Television allows Amazon to have creative opportunities,
obtain high reach, frequency and repetition, maintain a cost per contact that is affordable, and
arrange for audience selectivity (O’Guinn, Allen, and Semenick, 2012). Given these advantages
through television commercials, Amazon has an opportunity to commercialize the Kindle Fire
HD in a way that will allow our target audience to visualize and understand the benefits from
purchasing our product. Because of the numerous benefits we feel it is necessary to budget
$156,400,000 (50 percent), to help us achieve our objective of sustaining market share.
MediaMark has provided us with the proper information to understand that the most opportune
placements to reach our target audience and cause the greatest number of impressions will be
through advertising on daytime television, early evening news, and primetime television
(MediaMark, 2011).
We will have a series of three television commercials, which are all based on the concept
of showing a member of our target market connecting with a family member or friend surrounding
content downloaded to their Kindle Fire HD. This series of commercials is displayed in Exhibit
1.c. Television Commercial Storyboard. Each television commercial in our series will attempt to
make an emotional connection and tie-in that connection with the content offered to emphasize our
slogan, “More Knowledge, For Less.” We will also emphasize our low-price point on screen at the
end of our ads to ensure that consumers are left to ponder what is being offered at such a low price.
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Amazon Kindle Fire HD
Outdoor advertising offers several distinct advantages. This medium provides an excellent
means to achieve wide exposure for a message and a brand in specific local markets (O’Guinn,
Allen, and Semenick, 2012). Furthermore, these strategies attract consumer attention, promote
deeper levels of processing, and enhance various cognitive outcomes, such as brand recognition
(Wilson, 1). With the notion that our target market is constantly exposed to outdoor advertising,
we believe it is crucial for our IMC expenditure to reflect this. Outdoor advertising is a widely
exposed tool amongst our target audience, though not as high as print, television, and radio. As a
result, we have decided to allot 5 percent of our IMC expenditure budget to outdoor advertising.
We feel that because of low production costs associated with outdoor signage and billboard
advertising, we will allocate the majority of the $15,640,000 to the media costs and placement
costs. This will allow us to display our advertising in high frequency visited locations portraying
our slogan of “More Knowledge. For Less.” In addition, outdoor advertising allows us to be
flexible with our advertising and display different messages within different national and regional
media locations.
Our outdoor advertisements will be the same as our print advertisement (See Exhibit 1.a.
Print Advertisement and Outdoor Advertisement). We feel this emotional appeal will affect our
target marketing and portray both content and connection. The prevalence of this particular
advertisement, both in print and in outdoor advertising will create an integrated message and
benefit our communication efforts.
The strategy for advertising online will include websites frequented by older demographics.
Although our target market is typically a light Internet user (MediaMark, 2011), the reach of an
Internet ad campaign is beneficial to painting the Kindle Fire HD as a viable, value-driven
alternative to the competition among those more interested in content than top-of-the-line
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Amazon Kindle Fire HD
hardware. Additionally, advertising online will have a wide-reach among those looking for a gift
for parents and grandparents for the holidays. One distinct advantage to advertising online is
ability to collect and analyze data to track the effectiveness of the campaign (O’Quinn, Allen,
Semenick, 2012). Additionally, the abundance of available websites provides a nearly infinite
supply of websites on which we can advertise the Kindle Fire HD. Banner ads also provide us with
the ability to integrate other forms of advertising quickly and easily and to adjust our campaign as
we see fit. We can also utilize banner ads as a gateway to more interactive forms of online
marketing should we see an opportunity to do so in the future.
We have produced two web banner advertisements (See Exhibit 1.d. Web Display/Banner
Advertisements). Each will feature an Amazon Kindle Fire HD along with our main tagline “More
Knowledge. For Less.” One will feature the words “Content” and “Power.” The use of the word
“Content” is intended to entice consumers to learn more about what that content means and how
much of it is available; the word “Power” is used to portray the idea knowledge is power that that
powerful knowledge can be achieved through content. The other advertisement will feature the
words “Features” and “Possibilities” in order to describe that the Kindle Fire HD has a vast
amount of features, which can lead to endless possibilities. These web banner ads will link directly
to Amazon’s website so users can learn more or purchase the Kindle Fire HD; they will have the
opportunity to view both content and features in order to formulate their own ideas about the
possibilities and power that can be gained from a Kindle Fire HD.
Similar to web banner advertising, search engine marketing offers the advantage of being
highly measurable and provides an array of tools to help with analytics. We will be focusing on a
variety of keywords that we believe will trigger interest in the Kindle Fire HD. While the baby
boomers and traditionalists do not typically use Google as their primary medium for gathering
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Amazon Kindle Fire HD
information, their children do. We believe that the Kindle Fire HD makes the perfect gift for a
grandparent, so we will invest in PPC advertising for terms related to “parents,” “grandparents,”
and “gift.” Additionally we will include the words associated with our taglines: "Knowledge.
Content. Connection" and "More Knowledge. For Less" and "Starting at $199” (See Exhibit 1.e.
Search Engine Marketing/Pay-Per-Click Advertisements). Our PPC campaigns will be rigorously
tracked and adjusted as we gather more and more data to determine the effectiveness of certain
keywords and phrases.
We have decided to follow in similar footsteps of companies such as Apple and Dell by
implementing mall kiosks to sell and display our Amazon Kindle Fire to our target market.
According to Twice News, Apple and Dell both separately made the decision to begin displaying
and selling their products using kiosks and alternative storefronts (Wolf, 1). We believe that
currently, there is not enough exposure of our product in the hands of our target audience. Retailers
such as Wal-Mart and Target previously carried Amazon Kindle products in stores but both choose
to stop. Target cited that they would no longer carry Amazon Kindle devices in their stores
because of “showrooming, the term given for when shoppers check out products in stores, only to
buy them more cheaply from online retailers such as Amazon, which don't collect sales taxes in
many states” (Zimmerman and Bensinger, 1). Because retailers no longer offer the product in
stores, consumers do not have the opportunity to see and feel the product; we see this as a major
disadvantage. Our IMC plan includes allocating 3.5% of our IMC budget to set up a pilot program
of kiosks in malls located in several counties in Florida, which have a high population of baby
boomers and traditionalists, according to US Census Data (Aging Population U.S. County Map,
2012). We feel that once consumers have made an emotional connection with our product through
our advertising communication and firsthand experience with the product, a large number of
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Amazon Kindle Fire HD
additional sales will be generated. By implementing these kiosks into our strategy, we will be able
to attract shopper’s attention to our brand, convey the benefits from purchasing our product and
content, and highlight our competitive advantage with pricing information. The kiosks will also
allow our consumers to increase word of mouth and compare the Kindle Fire HD to competitors
(O’Guinn, Allen, and Semenick, 2012). Additionally, the relatively low price tag makes the
product a potential impulse purchase, which could help our target market to make the decision that
the Kindle Fire HD is the product for them.
We will start with a pilot program and produce 30 kiosks placed within Florida shopping
centers where our target audience is most heavily populated. We believe that this will be an
immediate success and as a result have decided to allot an additional 9% of our IMC expenditure
to produce and place other kiosks nationally. With regards to the pilot program, each kiosk will
cost around $10,000 to produce (How to Start a Kiosk Business, 1); we have allocated an
additional $5,000,000 to cover rent expenses for this support media. This pilot program totals
$10,940,000, which accounts for 3.5% of our IMC expenditure. The additional 9%, $33,800,000
will be spent after we have achieved measureable success after 6 months of our pilot program.
Therefore, a total of 12.5% has been allocated for support media in the form of kiosks.
Part IV – Rejected Alternatives
When initially conducting our research, we found that there was an opportunity to reach a
different audience than the current targeted market. We thought that we could target generation
Z, baby boomers, and traditionalists. This is a very large and varied market, amounting to
approximately 100 million people. Generation Z, ages under 20, makes up 7.4% of the
population, about 23 million people. We initially saw an opportunity with this generation
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Amazon Kindle Fire HD
because although they are young, they are beginning to get involved in the technology of today.
We realized, however, the purchase will most likely be made by the parent of this generation
when searching for a suitable gift for their child. We found that we were trying to market to too
large of a segment of the population and needed to focus on either the older or the younger
generations.
By trying to capture both the younger and the older generations we would have been
forced to give up some elements in order to appeal to one versus the other. If we were to dilute
our marketing strategy enough to appeal to both groups, our strategy might not be strong enough
to capture a solid amount of either.
Therefore, we decided to focus on the baby boomers and traditionalists who make up the
larger portion of the two markets. Unlike the generation Z, they are the ones that will be making
the purchase decision. By marketing directly to them with the mindset that they have their own
needs, we can be assured they will be the ones buying the product for themselves and for their
families.
A theme throughout the process of creating our integrated marketing communications
plan was trying to fit too many options and alternatives into our plan. This can be seen through
our desire to create a too large and varied target market, as well as our initial communication
plans spinning in too many directions. Through research, discussion, and feedback we have been
able to narrow both our target market and ideas of what the Kindle Fire HD really means to
consumers. In a collaborative effort, we have been able to create an integrated marketing
communications plan that we strongly believe will allow Amazon to maintain its 9% market
share in the rapidly growing tablet market.
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Exhibits
1. New Advertising
a. Print Advertisement and Outdoor Advertisement
b. Radio Advertisement Script
c. Television Commercial Storyboards (3)
d. Web Display/Banner Advertisements (2)
e. Search Engine Marketing/Pay-Per-Click Advertisements (4)
f. Kiosk Example
2. Existing Advertising
3. MediaMark Fall 2011 Media
4. IMC Budget and Objectives
5. Revised Creative Strategy Form
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Amazon Kindle Fire HD
Creative Strategy Brief
Project: IMC Creative Brief
Date: 12/04/2012
Job Number: BMGT450: 0201
Client: Amazon
Email: rfiddler@terpmail.umd.edu
Phone:
Issued By: Brittany Barretta, Ryan
Goldfarb, Max Linkoff, Adam Parkes,
Johnny Polster, Lindsay Schaub
Email:
Phone:
Brand
What is the name of the brand?
The brand is Amazon (www.Amazon.com).
Product/Service
What is the product called?
The product is the Amazon Kindle Fire HD.
What does it do?
The Amazon Kindle Fire HD is a line of tablet computers produced by Amazon to supplement its
line of Kindle e-readers; it is offered with a 7” or 8.9” multi-touch color display. Kindle Fire HD
includes access to Amazon’s app store and its catalog of games, e-books, music, and video.
Marketing problem communication must help solve
What is the marketing (sales, mkt. share) purpose for the communication?
The marking purpose for the communication is to maintain market share at 9% as the tablet
market continues to grow and competition increases. As the tablet market continues to grow,
more competition and more tablet diversity are expected. We feel that Amazon will not be able
to maintain current market share of 9% with their current strategy. As a result, we have decided
to change our target market in order to put the Kindle Fire HD in the hands of the right consumer
enabling the company to sustain 9%. With predictions of the tablet increasing by 68% in 2013,
we have calculated that we will need to sell 19 million tablets to maintain our market share.
Form
What form(s) will this communication take—print, radio, TV, etc.
For our marketing communication we will be using TV, print, radio, outdoor billboards and
signage, web banner ads, search engine marketing (pay-per-click) and kiosks placed in malls.
Our TV ads will be our main communication and will help our customers visualize the benefits
of the Amazon Kindle Fire HD in terms of how parents and grandparents can use it to stay
connected with friends and family members through both communication and content. We will
use kiosks to put the product into consumer’s hands. Considering that Amazon is an e-commerce
company, people do not have the opportunity to see the Amazon Kindle Fire HD. If our
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Amazon Kindle Fire HD
consumers could see and feel the product then they will be more likely to purchase it, especially
because the low price makes it a potential impulse purchase.
Target Audience:
To whom is the communication directed?
The communication is directed to our target market, baby boomers and traditionalists (ages 4866 and older). Together they account for 24% of the US population or 76 million people. We
have found that Baby Boomers watch more TV than any other age group, and they read
newspapers more than any other age group. Additionally, they have more discretionary income
than any other age group and hold 70% of the disposable income. According to the “Tech Guide
for Baby Boomers,” social networking use among older boomers has grown by 88%. Boomers
are adopting social networking tools to “not only connect with friends and family, but to solve
their own individual problems and interests.” Additionally, the guide suggests that baby boomers
choose tablets as a means for their technological needs because of their wide screens and ease of
use. The article cites the Apple iPad as a viable option; however, we can use this insight as an
opportunity to show that the Amazon Kindle Fire HD is the best way to connect to social media
tools and other applications at a much lower price.
Communication Objective
What can the communication accomplish to help solve the marketing problem?
As we have mentioned in our marketing objective, we must sell 19 million tablets to maintain
our current market share, as the tablet market is predicted to increased by 68% in 2013. We will
be able to achieve this sales volume through advertising and increasing the marketability of
Kindle Fire HD. Our goal through our marketing communications is to reach 80% of our target
market and cause them to see that our product is the perfect fit for them at the most affordable
price. Furthermore, we would like 15% of our target market to own an Amazon Kindle Fire HD
as a result of our marketing efforts.
Competitive Environment:
The Apple iPad and Samsung Galaxy Tab 10.1 are our two main competitors in the tablet
market:
The Apple iPad holds 50.4% of market share and a 3.38% share of voice in 2009. The iPad is
positioned as a full tablet PC. Apple’s advertisements focus on promoting its amazing display,
the productivity that it induces, and also the entertainment aspect of it. Advertisements for the
iPad can mostly be seen on TV and Youtube, while also being visible outdoors in the form of
billboards and posters.
The Samsung Galaxy Tab 2 has a market share of 18.4% and a share of voice of .7% in 2009.
The Galaxy Tab is marketed as a simple tablet with premium features. The Galaxy Tab 2 is
positioned as a viable option in the tablet market that will provide its users with premium content
and access to thousands of music and videos with over 450,000 apps. Samsung uses TV and
Online advertisements to promote their product.
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Amazon Kindle Fire HD
Point of Difference
How exactly is the product/service better than others, from the customer’s viewpoint?
The Amazon Kindle Fire HD is better than the competition within the tablet market because it
offers our target customers access to more knowledge (books/movies/etc.) that they can use to
form a connection with their friends and family. We have come to the conclusion that the content
provided by the Kindle Fire HD, we are truly providing our customers with knowledge.
Key Insight
Is there one important piece of information or idea that will make this communication
successful?
We have determined a key insight to be that our target demographic isn’t the average technology
user and because technology has become the most widespread form of communication we must
emphasize that our tablet is an easy way to keep in touch with the updates that family and friends
post online and an easy way to carry around a vast amount of content, all of which translates to
knowledge, at an extremely reasonable price. Knowledge can be gained through the content
available on Amazon.com and can also be gained through the ease of ability to communicate and
connect with family and friends. Our target demograpic desires the ability to harness knowledge
from a variety of sources and would like to use this knowledge to maintain connections.
Positioning Claim
Complete: To (target customer), (client’s product/service) is the (competitive frame) that delivers
(benefits).
To parents and grandparents (baby boomers and traditionalists), the Amazon Kindle Fire HD is
the tablet that offers the most affordable way to access a variety of content in the form of books,
movies, TV shows and more that can be used to form deeper connections with family and friends
through increased communication.
Support
What specific facts and perceptions support the positioning claim? Prioritize as key messages.
Currently, only 13% of our new target market owns a tablet. Baby Boomers and Traditionalists
account for 24% of the population or 76 million people. The fact that only 13% of our market
currently owns a tablet means that there is an opportunity for the Amazon Kindle Fire HD to
become the tablet of choice for Baby Boomers and Traditionalists.
Amazon.com offers 22 million movies, TV shows, songs, magazines, books, audiobooks, and
popular apps and games. With the Amazon Kindle Fire HD, users have access to content which
can help them to learn and connect.
Communication Tone/Personality
What tone/look should the communication have to be effective? What personality?
The objective of the advertisements will be affective association; the aim is to get the target
market to feel good about the brand and link the product with good feelings. We feel creating an
emotional connection is the best way to show our target market what the Kindle Fire HD offers
to them personally.
We will to emphasize the Amazon Kindle Fire HD as a device which parents and grandparents
can use to keep in touch with their family. The product offers the ease of using applications such
as Facebook and Twitter where family members can update and share pictures, stories, and more.
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Amazon Kindle Fire HD
Consumer Action
What can we expect the target customer to think/do if the communication is successful?
We expect the target customer to not only see the Amazon Kindle Fire HD as the most
affordable product that will easily carry all their content, but also as a means to stay connected
with friends and family. We can expect those in our target market to purchase our product over
the competition because our product gives them what they want in a tablet at the most affordable
price.
Measurement
How will we know if the communication is successful? Any objective measurements?
We expect to retain our market share of 9% in the next year. Objectively, we know that we must
sell approximately 19 million tablets in the next year to maintain our market share if the tablet
market grows as expected.
Related Communication
What communication has been done in this or other media for this product/service?
There have been TV commercials as well as YouTube videos to communicate about the Amazon
Kindle Fire HD.
Executional Mandatories
Specs, logos, tag lines, colors, phone numbers, email addresses, web site addresses, etc.
 www.Amazon.com
 Kindle Fire HD
 16 GB $199.00; 32 GB $249.00
 Over 22 million movies, TV shows, songs, magazines, books, audiobooks, and popular
apps and games such as Facebook, Netflix, Twitter, HBO GO, Pandora, and Angry Birds
Space available through Amazon.
 Tag Line: More Knowledge, for Less. (With additional words that we offer more of…
“Content” “Possibilities” “Tradition” “Family”)
 “Starting at $199” – Emphasize low price point
Client Approval:
Date:
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Amazon Kindle Fire HD
Search Engine Marketing: Pay-Per-Click
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Amazon Kindle Fire HD
Radio Advertisement Script
Voiceover:
It can play any Beatles song ever made.
It can show you that 1940's classic movie - the one you thought you'd never see again.
It can help you video chat with your grandson in Cali.
It can make family Monopoly night possible - from anywhere in the world.
And even let you read that Dr. Seuss book that you thought was gone forever.
This is the Amazon Kindle Fire HD.
The most content for the lowest price.
More Knowledge, for Less.
Starting at $199.
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Amazon Kindle Fire HD
Other References
1. Albanesius, Chloe. "Little Profit Margin on Amazon Kindle Fire HD." IT Pro Portal. N.p.,
n.d. Web. 3 Dec. 2012. <http://www.itproportal.com/2012/11/07/little-profit-margin-foramazon-on-kindle-fire-hd/>.
2. Amazon. N.p., n.d. Web. 2 Dec. 2012. <http://www.amazon.com/>.
3. "Aging Population U.S. County Map." Map. Governing: The States and Localities. N.p., n.d.
Web. 29 Nov. 2012. <http://www.governing.com/gov-data/census/median-age-countypopulation-map.html>.
4. Astor, Brett. "Radio Advertising Costs- How Much Should I Budget." Strategic Media. N.p.,
n.d. Web. 29 Nov. 2012. <http://www.strategicmediainc.com/radio-advertisingarticles/radio_advertising_costs_how_much_should_i_budget.html>.
5. Boulton, Clint. "Kindle Fire Racks Up Over $100 in Content Sales." EWeek. N.p., n.d. Web.
29 Nov. 2012. <http://www.eweek.com/c/a/Enterprise-Networking/Kindle-Fire-RacksUp-Over-100-in-Content-Sales-790972/>.
6. "Eyes On Impressions." Matrixmediaservices.com. Matrix Media, n.d. Web. 29 Nov. 2012.
<http://www.matrixmediaservices.com/eyeson.html>.
7. Goode, Lauren. "Barnes and Noble Takes Aim at Amazon with New HD Nooks." All Things
D. N.p., n.d. Web. 29 Nov. 2012. <http://allthingsd.com/20120925/ barnes-noble-takesaim-at-amazon-with-new-hd-nooks/?KEYWORDS=amazon+kindle+fire>.
8. Hickie, Brandon. "Kindle Fire Marketing Strategy: Amazon's Big Bet." Openview Blog. N.p.,
n.d. Web. 29 Nov. 2012. <http://blog.openviewpartners.com/kindle-fire-marketingstrategy-amazon%E2%80%99s-big-bet/>
9. "Holiday FAQ." National Retail Federation. N.p., n.d. Web. 29 Nov. 2012.
<http://www.nrf.com/modules.php?name=Pages&sp_id=1140>.
10. "How to Start a Kiosk Business." Entrepreneur. N.p., n.d. Web. 29 Nov. 2012.
<http://www.entrepreneur.com/article/63012-1>.
11. IDC. N.p., 5 Nov. 2012. Web. 29 Nov. 2012. <http://www.idc.com/
getdoc.jsp?containerId=prUS23772412>.
12. "Indoor and Outdoor Advertisements." Billboard Source. N.p., n.d. Web. 29 Nov. 2012.
<Astor, Brett. "Radio Advertising Costs- How Much Should I Budget." Strategic Media.
N.p., n.d. Web. 29 Nov. 2012. <http://www.strategicmediainc.com/radio-advertisingarticles/radio_advertising_costs_how_much_should_i_budget.html>.>.
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13. Kosner, Anthony Wing. "Tablets Will Take Over Sooner Than You Think: Five Telling
Trends."Forbes. N.p., n.d. Web. 29 Nov. 2012.
<http://www.forbes.com/sites/anthonykosner/2012 03/04/tablets-will-take-over-soonerthan-you-think-five-telling-trends/>.
14. Liebeskind, Ken. "TV Commercial Production Costs Drop." Online Media Daily. N.p., n.d.
Web. 29 Nov. 2012. <http://www.mediapost.com/publications/article/13744/tvcommercial-production-costs-drop.html#axzz2DLi56W6w>.
15. Mossberg, Walter. "Kindle Fire HD Is Better but It Isn't the Best Color Tablet." Wall Street
Journal: n. pag. Web. 29 Nov. 2012.
<http://online.wsj.com/article/SB10000872396390444017504577645621475362372.html
>.
16. O'Guinn, Thomas, Chris Allen, and Rich Semenik. Advertising and Integrated Brand
Promotion. 6th ed. Mason, Ohio: Cengage Learning, 2012. Print.
17. Orchant, Joshua. Telephone interview. 26 Nov. 2012. Interview with Wall Street Journal
Multi-Media Sales Planner
18. Perenson, Melissa. "First Impressions: Samsung's Galaxy Tab." NBC News. N.p., n.d. Web.
29 Nov.2012. <http://www.msnbc.msn.com/id/39234134/ns/technology_and_sciencetech_and_gadgets/t/first-impressions-samsungs-galaxy-tab/#.ULfAvLv2p8l>.
19. Rubino, Daniel. "First pics of Microsoft's Holiday Stores Show Up." Windows Phone
Central. N.p., n.d. Web. 29 Nov. 2012. <http://www.wpcentral.com/
first-pics-ms-holiday-stores-show-galleria-mall>.
20. "The Tablet Revolution." Twice: This Week in Consumer Electronics: n. pag. Dropbox. Web.
29 Nov. 2012.
<https://www.dropbox.com/s/8lb33v7g3mxscew/The%20Tablet%20Revolution.pdf>.
21. Tice, Carol. "Demographic Differences Are Key in Amazon-Walmart Online Battle." CBS
Money Watch. N.p., n.d. Web. 29 Nov. 2012. <http://www.cbsnews.com/8301505123_162-43940116/demographic-differences-are-key-in-amazon-walmart-onlinebattle/>.
22. "TV Basics." TVB. N.p., n.d. Web. 29 Nov. 2012.
<http://www.tvb.org/media/file/TV_Basics.pdf>.
23. Zimmerman, Ann, and Greg Bensinger. "Wal-Mart to Drop Amazon's Kindle." Wall Street
Journal: n. pag. Web. 29 Nov. 2012. <http://online.wsj.com/article/
SB10000872396390444165804578008420058302206.html?KEYWORDS=Amazon+Kin
dle>.
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Existing Advertisements
http://www.youtube.com/watch?v=ZtEl2o0fEAg (Amazon)
http://www.youtube.com/watch?v=guAcamrr1Ug (Amazon)
http://www.youtube.com/watch?v=4JwfRmzlIsw (Amazon)
http://www.youtube.com/watch?v=xEDqCCQq0vg (Amazon)
http://www.youtube.com/watch?v=Nn4kQz151yA (Amazon)
http://www.youtube.com/watch?v=RQieoqCLWDo (Apple)
http://www.youtube.com/watch?v=1wpKyOZ76DU (Apple)
http://www.youtube.com/watch?v=qDDHGHasiQI (Samsung)
http://www.youtube.com/watch?v=xlH5_hTita4 (Samsung)
http://www.youtube.com/watch?v=Lpt2u1ilpuw (Barnes and Noble)
http://www.youtube.com/watch?v=-fbNHefLSWU (Barnes and Noble)
Much More for Much Less – Referenced from Amazon.com
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Amazon Kindle Fire HD
Print Advertisement and Outdoor Advertisement
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Amazon Kindle Fire HD
Web Display/Banner Advertisements
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Amazon Kindle Fire HD
Kiosk Example
The Amazon Kindle Fire HD kiosks will be similar to the above kiosk produced by Dell. It will
feature the Amazon Kindle Fire HD and will allow users to test-out the product. It will also offer
accessories related to the tablet such as chargers and cases. Signage will be produced that
displays “Amazon.com,” and pricing information. The tagline “More Knowledge. For Less.” will
be displayed on the kiosk and the print/outdoor advertisement will be on display. The Kindle Fire
HD’s that are available for testing will be preloaded with popular content and will feature our 3
television advertisements on the main screen for consumers to view.
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Amazon Kindle Fire HD
35