E-Books Rewrite Bookselling
1.
Evolution of Bookselling Format
1.
3.
Local, independent stores
2. Chain stores in shopping malls
Superstores (B&N; Borders; Books a Million)
4. Online stores (Amazon)
5. E-Book
2. Who does E-book help or hurt?
3.
1. Publishers
2. Retailers (offline; online)
E-book retailers (iBooks of Apple; Kindle eBooks)
E-Books Rewrite Bookselling
3. Math for book retailing
Lower price of E-book
Physical book based: 50 – 50 split
E-book based: 70-30 split
4. A Key Takeaway: How to Respond to Innovation?
5.
Suggestion for B&N
Retail company versus technology company
From selling to consumption
From individual consumption to group consumption
“Cultural Department Store”
Big Brewers Are Sidling into Retail
1. Issue: Legal restrictions
2. Brewers’ Responses:
1. Brew-pubs
2. Licensing
3. Benefits: Marketing, shelf space
4. Potential Danger of the strategy
Webvan: What went wrong?
1. $8.7B market valuation (Nov 1999)
2. Model: Pick-Pack-Deliver (Groceries)
3. First angle: Consumer Behavior
 Benefits (Unique Values) Provided by Webvan
 Costs for Using Webvan service
 Are you willing to pay the cost for that benefit?
4. Second angle: Competition
 Supermarkets: Business Model; Purchasing
power, EOS, market coverage
 Webvan: Business Model; Low, small, and
sporadic
Webvan: What went wrong?
4. Third Angle: Marketing Channels
1. Functions and Costs (FT article)
2. Service Output Issues
5. Major Lessons (Roger Blackwell)
6. Back from the Dead (WSJ article):
What are the changes?
Lingering problems?
Wine Distribution (Circa Sep 2008)
1.
State Response to Supreme Court Ruling in 2005
1.
2.
3.
More States To Permit Direct Shipping
Made it hard to order
Discrimination against Big, Out-of-State Wineries (from West Coast)
http://www.freethegrapes.org
2.
New Players: Amazon.com; WSJ; NYT
www.wsjwine.com
1.
Efforts to Knock Down Shipping Restrictions
-
Mixed Success
Indiana case: State cannot bar shipments by out-of-state wineries to
retailers.
4. Learning points: Antitrust and Consumer Welfare; (Slow)
Channel Evolution
Coke Distribution (circa 2006)
1. Historical Background
- Current system
- Why current system?
- Problems of the current system
2. What is the key issue?
3. Your suggestion
Realtors and Online (May 2008)
1.
Background Information
- Current system for buying and selling houses
- Why current system?
- Problems of the current system
2. Emergence of Internet Brokers and Response by
Traditional Realtors
3. Lawsuit in 2005 and a Settlement
4. Winners and Losers of the Settlement
5. Implications for Marketing Channels
How H-P Reclaimed Its PC Lead Over Dell
I. Hiring Todd Bradley from PalmOne
II. “HP is fighting on the wrong battlefield”
 Shift of Channel Focus (ex: Store-exclusive noteboo
III. Migration of PC demand: Desktops  Laptops
(different buying/using behavior)
IV. H-P needed to convince shoppers that retailer was
the better channel choice  Shift of H-P PC Positionin
Product Focus  User Focus
(“The Computer is Personal Again”)
V. Promotion Shift: More Pull  More Push*
12
Promotional Strategies**
1
*
Pull Strategy
Push Strategy
Manufacturer
Manufacturer
3
Channel members
2
Final users
(consumer or industrial)
*Numbers indicate sequence
of flows
1
Channel members
2
3
Final users
(consumer or industrial)
Promotion flow
Negotiation flow
Product flow
Dell’s Strategy for Growth*
1. Current Market Portfolio
* Business Model
2. Advantages of Dell Model
1. Cost efficiency of direct model
2. Customization & Responsiveness
3. Focus on detail
3. Three-Step Growth Strategy*
4. New Frontier for Dell: Consumer Electronics
Dell’s Strategy for Growth
5. Three Main Challenges for CE Market
1. No Customization and Less Responsiveness
2. Will People Buy CE Direct?
3. Dell’s Brand Equity for CE Product
Mike George’s two comments
6. Playing the OEM game (back page)
- Who are customers?
- Upside & Downside
- Response from resellers and small
manufacturers
Nicole Miller Fashion House
1.
2.
3.
4.
5.
6.
7.
8.
Mission of Nicole Miller
Positioning of the Nicole Miller
Target market of Nicole Miller
Marketing Mix
Product:
Price: Expectation
Place: Combo
Promotion: Combo