End Customer
Scenario: The year is 2020 and print sales have diminished to the point where they have become a niche product for bibliophiles, collectors and libraries. Ninety percent of sales are now e-books sold mostly via a handful of large online retailers controlled by Amazon, Apple, Google, Barnes & Noble, Borders and Scribd. While smaller niche stores exist, these “Big 6″ collectively account for 85% of all digital sales.
Problem: Because all publishers are selling through the same six stores, there are no longer any distribution or placement advantages among publishers. Every book is displayed equally and is equally available. Moreover, just as with bricks-and-mortar bookstores, these e-book sellers do not report end-user data. In this scenario, driving sales of new books requires marketing directly to readers.
Exercise: Craft a strategy for developing a database of end-user data. How might you locate your customers? How might you incentivize them to provide you with their name, contact information and their reading interests/information needs? And finally, armed with a database of customer data, what tactics might you employ to increase your sales?
Core Business
Scenario: The year is 2020 and concurrent with the scenario described at left, there are significant changes in the traditional publishing supply chain. The “Big 6″ have recently begun offering advances to authors in exchange for exclusive distribution. Agents are now working directly with these booksellers and are themselves, in some cases, offering advances and editorial services. Self-publishing houses have proliferated offering a range of for-fee services. Digital distribution hubs, such as SmashWords and Indiebound focus on connecting niche authors and readers.
Problem: With both agents and digital booksellers offering advances and editorial services, both traditionally the realm of publishers, your organization, like many other traditional publishers, is struggling to differentiate itself clearly and define the in which it can deliver the most value to authors.
Exercise: Define your organization’s core competencies in the context of the new digital content environment. What are the key areas where your organization adds value? What are the communities of authors, readers or other stakeholders that it services? What does it do that is hard for other organizations to replicate?
Mobile Strategy
Scenario: The year is 2020 and electronic titles are being read on a dizzying array of devices, from dedicated e-book readers to mobile phones to tablet and laptop computers. Moreover, the form-factor of these devices varies greatly, from slim tablets to digital paper that rolls up and fits in a reader’s handbag or briefcase. Together, reading on these mobile devices accounts for over 80% of sales (with print reading and reading via desktop machines accounting for most of the remaining 20%).
Problem: Mobile devices have different functionality and different user interfaces. Moreover, readers interact differently with mobile phones than they do with laptops. How do you deliver a content experience that is relevant to each of the various platforms on which it is delivered?
Exercise: Develop a mobile content delivery strategy. How do you deliver a compelling reading experience relevant for each platform to which your content is delivered? What changes do you make in how your organization goes about commissioning and/or acquiring content—and in terms of what kind of content is acquired? What skill and expertise do you need in-house?
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