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Kasandra Casillas

on 19 May 2015

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Transcript of Books

What business(es) are we in?
Leisure and/or entertainment
Selling gifts
What business(es) should we be in?
Leisure and entertainment with a cultural dimension
What business(es) should we not be in?
What, Who, and How
Major consumer groups:
Gift givers
Leisure readers
Need for entertainment
Knowledge seekers
What is being satisfied?
Satisfaction and Substitutes:
Places where to spend free time

Entertainment: Movies, theater, museums, etc.
Leisure: TV, video games, etc.
Gifts stores: Florists, chocolate shops, etc.
Education: Documentaries, etc.

Nilo Amnzadeh, Margot Breard, Patricia Ishigai, Kasandra Casillas
Reference Market and Environment
Macro Environment
Pestel Analysis
No relevant political factor

The country’s economic crisis
Decline of 30% in the sales of books since 2008
From 2012 to 2014 some of the most famous bookstores have closed
(Catalònia in Barcelona with almost 90 years old)
Shift in consumption habit: people buy more books from supermarkets and more online (Amazon for instance) mainly because it is cheaper

Pestel Analysis
14 to 24 year-olds read the most
. Read more during free time than for studying.
Women read books more than men
More people read in big cities
More people read as students or working than retired or unemployed
Growing number of frequent readers
(reading almost everyday)
Percentage of readers who read during their spare time is staying still, except for the elders (increasing)
The main reason of reading are: entertainment (83,9%), to higher the cultural level (11,0%) and for studies purposes (7,0%
Technological factors:
Advances in offset printing
Save time on printing
New machinery
Chemical method
Digital books
No need for paper

Environmental factors:
Environment friendly movement
Favoring of e-books by consumers
E-book is not affordable for some people

Legal factors:
For book editors and writers
For bookstores
Common legal business practices
Pestel Analysis
High market share of the bookstores in the books distribution channel: 48,5% of the market
Product (service) life cycle: Maturity phase

Cash cow... But in the wane ?
High market share, but low market growth
Traditionnal bookshops are closing all around Spain
Potential customers-base is not growing
Lower investment, adapt strategy for growth
BCG Model
How are they being satisfied?
Vehicles for customer satisfaction:
Product accessibility in bookstores
Alignment of atmosphere to target segment
Availability of books for gift giving, leisure, education, or entertainment
Wide assortment of books in demand by target demographic
Life cycle
Who is being satisfied?
Five Forces Model
Casa del Libro
25 locations in Spain
Leading Spanish-language bookstore
Large library collection delivered to the five continents
Internet bookselling

La Central
Single bookseller in Barcelona
Specialized in the field of Humanities

Visor Libros
Located in Madrid
Specializing in philosophy, poetry, history, politics, literature, and fairy tales
Analysis of competition, major players, brands
156 stores in seven countries
First distributor in Europe of technological and cultural products
Books, music, film, image, sound, computer, video games, and more
An essential reference for both programming and consumption of leisure and culture in Spain

Altair Libreria
Located in Barcelona and Madrid
Stands out for beauty
Europe's largest bookstore
Specialized in travel
Meeting place for lovers of travel
Analysis of competition, major players, brands
Related to entertainment
Usually read in the relaxing places or in the public transport for leisure

To relax or meet friends

Books and Cafes
Way to spend time
People would consider about staying more time in a bookshop if it has a comfortable environment and also a cafe
People want to feel at home
Quantitative and Qualitative Research
Survey Results
Pestel Analysis
Life Cycle
Bookstores are in the maturity phase
Competitive phase
Goal is to maintain their market share that they have built up

Survey Results
Analysis of Competition, Major Players, and Brands
Influences on Purchase and Different Consumption Roles
Consumer Decision Making Process
First Stage: Need Recognition
Search for new atmosphere
Free time filler
Social need
Academic: a place to study

Second Stage: Search for Information
Consulting with friends and family
Consulting the internet, TripAdvisor, etc.

Between Second and Fourth quadrant
Medium involvement: more than an impulse choice but does not bring about big consequences on the consumer's life so he is not going into deep research about it
Feeling category: the customer does not necessarily rationalize his choice

Diagnostic & Alternative Strategies
Diagnostic & Alternative Strategies
Bookstores need to attract new customers, especially people who are not used to buying books in bookstores but are interested in finding a place where to spend free time and enjoy reading

Improve a regular bookstore with a cafe, where people can drink something while reading, and a multi-functional art space

Segmentation and Positioning Strategies
Segmentation variables
Description of Segments
Targeting Strategy
Value Proposition Strategy: Positioning Strategy & Branding Values
Value Proposition Strategy: Positioning Strategy & Branding Values
Product Concepts
Third Stage: Product Evaluation
Comparative criteria
Distance to home
Types of books sold
Service quality

Fourth Stage: Product Choice and Purchase
Decision made after careful evaluation and previous experience

Fifth Stage: Post-purchase Use and Evaluation
Comparison of real product and experience to expectations
Cognitive dissonance
Consumer Decision Making Process
Survey Results
Proposition 1:
In the market of leisure for young people, we will develop a cafe-bookshop for those interested in art, culture, and concerned about their social image. This concept would offer a different and trendy experience in an intellectual atmosphere. We are going to create a space providing gourmet food along with sophisticated books associated with an area dedicated to promoting art.

Proposition 2:
In the market of leisure for young people, we will develop a bar-bookshop for those who want to feel at home when reading but also having social interactions in a friendly, warm atmosphere because we are going to create a space providing second-hand, cheap, mostly fiction books. Included inside the bookstore would be a bar that offers wine and beer at economical prices for those who choose to read with a glass of their preferred drink.
Demographic Variables:

Behavior or Interest Variables:
Number of times people go to a bookstore
Reading habits
Thank You
A place where people can feel at home
We are committed to making them feel comfortable, to enjoy what they are doing (reading, talking with friends, eating)
Based on the qualitative research we found that atmosphere matters a lot, so we will take a special care on decoration
Creating a cafe area in a bookstore is a way to appeal to new consumers
Different kinds of environments we could create- depending on the targets chosen

Target - the open minded:
22 up to 27 years old
Goes to a bookstore or the library a couple of times a month
Read their books at home
Open to going to a bookstore/cafe

Best targeting strategy :
Undifferentiated targeting strategy
One unique marketing mix for both segments
Medium threat of new entrants
Low bargaining power of suppliers
Threat of substitute products or services is high
High bargaining power of buyers
High levels of rivalry among existing competitors
Description of Segments
"The skeptical"
22-27 years old
Do not see the bookstores as a place to read/relax
Goes to a bookstore a couple of times a year
Would be open to going to a bookstore if it had a cafe or wine-bar
Full transcript