The Company

Founded in 1995 by Jeff Bezos as an online bookstore, now is the Americas largest On line retailer. Operations in the United States, Canada, France, Germany Japan and the United Kingdom. The majority of Amazons sales are products sold by Amazon and the remaining amount from third-party sellers. Sales at the end of 2009: $24.509 billion.
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Amazons Corporate Mission

We seek to be Earths most customer-centric company for three primary customer sets: consumer customers, seller customers and developer customers Amazon is able to leverage the internet to significantly beat its competitors price

Amazons Goals
1. Being the Earth's most customer-centric company" 2. Innovating on behalf of customers"

3. The idea to personalize... the store for each and every individual customer."

Amazons Business Model

Virtuous Circle

Amazons Business Model

Fulfillment Centers: Big warehouses located around airports in North America, Europe and Asia

Data Warehouse: Is the central point of Amazons data

No physical retail stores: reduce huge expenses.
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Books as a % of Amazons 2009 North America Net Sales

North America Trade Book Market Share 2004-2009

Amazon Kindle: Product & Value Proposition

Amazon reported 80% of eBook market >450 000 books available for download Newspapers, magazines and blogs subscription

Kindle eBooks add 35% to a physical books sale on Amazon

Amazon keeps 65% of the revenue from all eBook sales for Kindle "Our vision is to have every book ever printed, in any language, all available in tinder 60 seconds. - Jeff Bezos, Amazon.com CEO 8

Value Proposition:
Readability: No glare in sunlight, no eyes strain, Convenience of getting books sharp display in 60 seconds Electronic ink display

1 month of battery life Small and slim size Ultra light -8.5 ounces

Price-profit relationship

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

Price
New Kindle price at just $139 to battle Ipad Kindle books outselling hardcovers Kindle reader apps for iphone, mac, androids, windows extends the potential customers for e book to tens of millions. Perhaps libraries will flourish (readers will still like to browse) Kindle: hardly done evolving(no price reduction).

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E-book reader Growth factors

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Awareness

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Internet Users

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Rise in e-book market

400 year old newspaper industry is moving trying to take advantage of online space. The e-book market hit $130 million in 2006, expected to reach $220 million this year. Five years out, the total e-book market: between $3 billion and $5 billion. E-book market is in early stages. E-books overtook audio-books in 2009 : sales reached $313 million in 2009, up 176.6%. Young adults are using more e books than baby boomers.
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Kindle market and Segmentation

Current market for age group of 35+. Age group 20-29 i.e younger segment need to be focused.
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Competitors

kindle 3
display price size( inch) weight battery life Wireless E-ink $139 7.5" x 4.8" x 0.335" 8.5 1 month YES

ipad
LCD $499 9.56" x 7l47" x 0.5" 24 10 hours YES

nook(wi-fi only)
E-ink $149 8.1" x 5.0" x 0.48" 11.6 10days YES 17

Ipad : multi media device

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Recommendations.
Payment options : Installment payments for students Rebate marketing Partnership with cellular network such as AT&T and can effectively use their 3G network Partnership with airline industry
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Promotional Schemes
Pamphlets distributed over school to generate awareness to the younger segment. ( compare ebook, text book price) Regular promotional events in major schools and universities and offer student discount of 10% Free coupons of discounts for heavy Amazon ebook readers

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Promotional Schemes.
Holiday gift promotion - sharing with your beloved ones Christmas gift season share your reading experience with your beloved ones. Buy 2 or more, kindle gifts each kindle 5 best-sellers (worth 50 USD) Buy kindle now to get 10% off Valentines gift season own your pair kindles Free customized lighted covers for you two. ( name on the case, styles for choices) Buy 2 get 20% off Extended 2 years warranty

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Distribution Channel(Place)
Currently Kindle is only available through Amazon.com. Hence to increase the sales they should strengthen the distribution channel: Availability over mass distribution channel such as Walmart, Target, Best buy, Staples etc Target Sales : Set variable incentives for sales people to spread word of mouth

Promote Kindle through website

Provide retailers with physical space.
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Marketing 6 Ms
Mission: To increase the popularity of Kindle Objectives: To place Kindle at the top of the list. Increase the e-book sales.
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Marketing 6 Ms
Message: Read e-books for 10 hours without straining your eyes. Market: E-book readers want real book reading experience on their electronic device.
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Marketing 6 Ms
Media
Amazon is using following methods to promote Kindle and create brand awareness Advertisement Place kindle on Amazons homepage Comparing old and new generation Kindle at mega stores Telephone Consumer feedback videos online.

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Marketing 6 Ms
Money : Price reduced to just USD $139(with Wi-Fi)!! USD $189 (Wi-Fi + 3G) Amazon planning to reduce kindle e-book prices !

Measurement: Effectiveness of Kindle campaign

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Kindles opportunities..

Kindle

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

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Choice is yours!!

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