A study on Kindle Case Study, Slides of Marketing

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INTRODUCTION

A first kindle model was launched in

A first kindle model was launched in

The Sony e-reader was a key player in the E-

Book Ecosystem

The Kindle Fire tablet was launched in 2011

The Kindle Fire tablet had 50,000 preorders

per day during preorder period

Marketing Mix of Amazon Kindle

 Product in the marketing mix of Amazon Kindle

Amazon Kindle in itself is no less than revolution but the improved

and modified products that followed just show the passion with

which products are built at Amazon. Amazon Kindle aims to

replace the quality experience of reading paperbacks.

Here’s the list of varied versions of Amazon Kindle:

• Kindle Paper white
• Kindle Oasis
• Kindle Touch
• Kindle Keyboard
• Kindle fire

 Price in the marketing mix of Amazon Kindle

Amazon Kindle was designed to replace the paperback

books and leverage people with a similar reading

experience.

No library subscription or no membership to book clubs

can replace the cost effectiveness of Amazon Kindle.

The varied versions come with varied pricing; the most

loved Amazon Kindle can be acquired against the

payment of 100-200 USD.

 Promotions in the marketing mix of Amazon Kindle

Be it America, Europe or India, Amazon has marketed

Kindle really well according to the tastes of each region.

Impressive marketing campaigns and online contests are

being run in order to let people discover new reading

options.

Amazon has used the save paper initiative quite

aggressively for marketing Amazon Kindle.

Amazon kindle can be bought online as well offline.

2) Media Junkies: Amazon already attracted the most avid consumers of media because of its bargain prices for content and its huge selection. The “media junkie” market had evolved in the digital age to rabidly consume multimedia content from numerous channels, often simultaneously. Indeed, one of the primary use cases for tablets, according to Nielsen, was in front of the TV.^8 As all content transitioned to digital, the case for targeting these most avid of users grew stronger. U.S. consumers were expected to purchase more music digitally than on CD by 2012. Additionally, DVD sales had fallen more than 20 percent in 2011, whereas streaming had risen by 33 percent. Subscription streaming services such as Hulu and Netflix for video and Spotify for audio were attracting millions of customers. Amazon was primed to offer an alternative to these, but only if they could get users to switch. Media junkies were quite price conscious because of the scale of their purchasing. Amazon fit this niche well because of its extremely competitive pricing on its music, video, and reading content. The Kindle Fire platform was ideally suited for downloading popular content through the Prime Instant streaming feature and for purchasing the more obscure titles that the long tail demanded through the massive Amazon store.

3) HIGHER EDUCATION

The higher education industry made an attractive market for transition to digital books. Amazon had served the education market for years through its new and used textbook businesses but had failed to transition these customers to digital. Amazon’s first attempt, the 10-inch-screen Kindle DX, had failed to catch on broadly, likely because of its high price point ($459) and its grayscale screen. By 2012, the more than $10 billion new-textbook market had remained relatively untapped by digital alternatives, despite these customers being the largest consumers of Amazon’s core service: books. To succeed in this market, Amazon would need to create a complex set of business-to business partnerships with colleges, universities, and their bookstores to manage the timely distribution and updating of e-texts. Because students tended to be tech-savvy, adoption of the devices was likely, if adequate content could be made available. And the value proposition of reduced-price textbooks was compelling for students, who craved bargains on their expensive yearly book bills.

POSITIONING THE KINDLE FIRE VERSUS THE IPAD

The tablet market was dominated by the first-mover iPad (2010) and subsequent iPad 2 (2011) offerings from Apple. These feature-rich devices succeeded where other tablets had failed by expertly walking the tight line between smartphone and laptop. Apple's strategy was to teach its customer base to use the iOS on the iPhone and iPod Touch and then graduate them to a larger-screen device that was more fun and convenient to browse and play on. On specifications, the iPad was a multipurpose, Swiss army knife-type device. Importantly, however, it was three to four times as expensive as a Kindle Fire, as well as quite a bit larger and heavier. Amazon had specifically created the Kindle Fire to be an affordable consumption device.

POSITIONING THE KINDLE FIRE VERSUS THE NOOK TABLET

The Nook and the Kindle Fire were extremely similar (from the hardware point of view) and were following the same pricing strategy as the earlier e-readers. Bezos worried that another price war might ensue. B&N had pursued the additional strategy of offering subsidies for Nooks at the point of sale if subscriptions were purchased with the device. For example, a $19.99 per month subscription to the New York Times netted the customer a $ subsidy on the purchase of any Nook product, which made the Nook tablet only $99. Bezos knew he could make this play as well but remained hesitant to give the appearance that Amazon was willing to "give away" its Kindles. He also knew that while B&N had posted a $6.6 million loss ($0.17 per share) for Q2 2011. it had increased its recently consolidated Nook business revenue 85 percent to $220 million in the same quarter. Although the devices could not differentiate on hardware specifications, they did offer very different user experiences. Amazon's focus was on its own content and services, whereas B&N focused on providing its own text-based content and allowing third parties to deliver the rest. The Hulu and Netflix apps came preinstalled on the Nook, along with the Google media store. Google Play.