Marketing 321- Section 20468 Professor Nankin

Eugene LeeLaura Hinkel Kristy HaefelinVijeta Malhotra Niamh Soraghan

AMP Groupe

Table Of Contents Executive Summary………………3

Situation Analysis:Company History…………………5Company Overview……………..6The Product………………….…….7Product Strategy……………….…8Pricing Strategy………………,…..9Promotion……………………....…10Placement Strategy…………….12Current Media Use……….….…,,13Current Positioning…………,…...16Industry Research……………...,..17Competition………………………21Consumer Research…..……...…23Target Audience…………………26Media Habits……………………..28Primary Research…………………32SWOT Analysis……………………43

Creative Brief: Objectives………………….………..45Brand Advantages

& Disadvantages………………...46Target Audience Profile…….……...47Campaign Characteristics………..48Reason to Believe……………….…..49The Advertisements…………….......50Below The Line Programs…………..56

Sales Promotion…………………..57Direct Response………………….58Sponsorship……………………….59

Media and Budget………………….60TV Advertising………………………..61Print Advertising……………………..63Internet………………………………..64Budget Breakdown…………………65

Bibliography………………………...66

Executive SummaryThe Kindle Fire is the newest tablet to the market. It is owned by Amazon, Inc., the world’s largest and most trusted online retailer. While the Kindle Fire increased the tablet market by 14% in one quarter, the target segment of 18-24 year olds view the Kindle Fire as cheap and of low status compared to the “Fire’s” fiercest competitor, the New iPad.

Research done by AMP GROUPE has found the target market to be heavy consumers of media that seek sleekness that will give them status. The “Fire You Can Play With Campaign” gives the segment a vicarious experience with the Kindle Fire.Our integrated marketing campaign has both below and above the line marketing tactics to reach our target audience. Traditional media such as TV and Print as well as online and promotional advertising will help create awareness among the target market and increase sales.

Niamh Soraghan Kristy Haefelin3

Situation Analysis

Company History 1

.

.

.

Laura Hinkel 5

July 1995 After funding is secured, Jeff Bezos launches Amazon.com on the World Wide Web.

1997 838% increase in sales; sales grew from $15.7million in 1996 to $147.8 million.

July 1999 Amazon.com expands the offerings available by creating Amazon Toys and Amazon Electronics

November 2000

First Free Super Saver Shipping Offer (Orders over $100) is introduced and the Marketplace is launched.

2006 Launch of Amazon Web Services (AWS)—cloud computing

November 2007

Amazon broke into the E-reader market with the introduction of the Kindle and the Kindle 2 in February 2009.

September 2011

The Kindle Touch, Kindle Fire and Amazon Silk are introduced

The beginning of a business plan….

1Amazon Company Profile as found from the "Business & Company Resource Center." Accessed March 18, 2012. http:galenet.galegroup.com.rlib.pace.eduservletBCRCvrsn=unknown&locID=nysl_me_pace&srchtp=glbc&cc=1&c=1&mode=c&ste=74&tbst=tsCM&tab=4&ccmp=Amazon.com Inc.&mst=amazon&

Company Overview Continuous focus on the consumer and

long term goals to achieve a strong brand and market leadership. 2

Amazon is constantly evolving technological innovation to provide customers with what they want 2: Low prices

Free shipping on orders $25 and above. Vast selection of products and brands Convenience

“1-Click Shopping” gives the customer a convenient checkout experience.

Amazon Silk “Buy Once, Read Everywhere” Kindle apps. Personalized selling gives the customer a

tailored and express shopping experience.

Laura Hinkel 6

Mission Statement:“Our vision is to be earth’s

most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” 3

“Invention is in our DNA and technology is the fundamental tool we wield to evolve and improve every aspect of the experience we provide our customers.” -Jeffery P. Bezos, President 2

…Led Amazon to become one of the largest online retailers…

2 Bezos, Jeffrey P. Amazon.com Inc., "2010 Shareholder Letter." Accessed March 18, 2012. http:// phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9OTA4ODB8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1. 3 Amazon.com Inc., "FAQs" Accessed March 18, 2012. http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-faq.

The Product

$199.

7Kristy Haefelin

4Amazon.com Inc., "Amazon's Innovations for Our Planet." Last modified 12/2011. Accessed March 18, 2012. http://www.amazon.com/b/ref=gw_m_b_corpres?ie=UTF8&node=13786321. 5 Patel, Kunur. "Amazon Kindle Fire Ignite Tablet Media Consumption." AdAge, Sept 28, 2011. http://adage.com/article/mediaworks/amazon-kindle-fire-ignite-tablet-media-consumption/230086/ (accessed March 15, 2012).

…And introduce the Kindle to the retail market…

Offers a one-click payment option so Kindle owners can purchase without re-entering a password each time. 5

THE KINDLE FIRE

With partners such as Fox, CBS, and NBC Universal, Amazon Prime members have access to easy streaming of over 100,000 Movies and TV Shows. 5

The Kindle Fire comes pre-loaded with an email app, which can be set up to any email service, Amazon’s Silk Browser, Netflix, Hulu and Pandora. Whispersync technology allows the Kindle user to sync and access content (notes, data, library, movies, e-books, etc.) where they left off, across all of their devices. 4

Product Strategy

8

Forrester Research Analyst Sarah Rotman Epps explains the trends in the Tablet Market: “It’s about the services” She Says: “What you can do with the device—which is why Apple, Amazon, and Barnes and Noble have succeeded in the U.S. where pure hardware plays have failed.” 7

Jeff Bezos, CEO at Amazon, says “ We don’t look at the Kindle as a tablet. We look at it as a service. “ 6

“Jill Ambrose, chief marketing officer of CourseSmart, a leading digital textbook provider, commented that her company is not interested in supplying content for e-readers because students want devices that do more than just one thing.” 6

Kristy Haefelin

6Friedman, Stan. "The Shape of Things to Come." Library Journal. 137. no. 3 (2012). http://search.proquest.com.rlib.pace.edu/abiglobal/docview/ 918980125/1356DE2196F7752F5EB/6?accountid=13044 (accessed March 15, 2012).7Whitney, Lance, and First . "One-third of U.S. adults will own a tablet by 2016, says report ." CNET News, March 7, 2012. http://news.cnet.com/8301-1023_3-57392478-93/one-third-of-u.s- adults-will-own-a-tablet-by-2016-says-report/ (accessed March 15, 2012).

…In order to fulfill the needs of consumers…

Pricing Strategy8

9

THE KINDLE FIRE EXPEDITURE

“CFO Tom Szkutak says that Kindle sales grew 177% over the last holiday season” 9

Kristy Haefelin

8Rassweiler, Andrew. "Amazon Kindle Fire Costs $201.70 to Manufacture .” isuppli.com. (2011). http://www.isuppli.com/Teardowns/News/Pages/Amazon-Kindle-Fire-Costs-$201-70-to-

Manufacture.aspx (accessed March 15, 2012). 9"The New Kindle Family." (online forum message). Amazon Press Releases. Novem 28, 2011. http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-

…At a price that is affordable for everyone…

Promotion Strategy10

AMAZON.COM Free Cloud Storage up to 5GB for any Amazon User Amazon Prime Amazon Prime Members experience free two-day shipping,

unlimited instant streaming of Movies and TV Shows, thousands of book for just $79 a year

Amazon Student Members of Amazon student can be an Amazon Prime

Member for 50% less the price Amazon Mom Free for Amazon Prime members, members of Amazon

Mom receive 20% off diapers and wipes along with other exclusive deals and discounts

Kristy Haefelin 1010Amazon, Inc, "Free Cloud Storage." Accessed March 15, 2012. https://www.amazon.com/clouddrive/learnmore.

…with promotions to attract a variety of consumers…

Promotion StrategyTHE KINDLE STORE The Kindle Fire Newsstand has over 400 magazines and

newspapers. Conde Nast gave Kindle Fire owners who signed up before March 1, 2012 an exclusive free three-month trial of up to 17 top magazines including Vanity Fair, GQ and Glamour. 11

The Kindle store gives the user recommendations for apps they may like and offers a weekly free app to users. Apps have been given for free originally costing $10. 12

Kindle Owners Lending Library: Growing for Amazon Prime Members that have a kindle. Users can now borrow books for free onto their Kindle Fire. 13

Commercial Free Streaming Books are offered at $9.99 or less Free One Month Trial of Amazon Prime

Kristy Haefelin 11

11Amazon, Inc, "Free Cloud Storage." Accessed March 15, 2012. https://www.amazon.com/clouddrive/learnmore. 12"Kindle Fire Newsstand." (online forum message). Amazon Press Releases. Novem 11, 2011. http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol- 13"Kindle Owners Lending Library." (online forum message). Amazon Press Releases. Febru 12, 2011.

http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol- (5)

…to whom Amazon offer’s an array of services…

Placement Strategy14

The Kindle can be found online on Amazon.com among many other online retailers.

Sold in over 16,000 stores across the United States. (2)Best Buy, Target, Wal-Mart, Staples, Sam’s Club,

RadioShack, Office Depot and others.Places such as Best Buy allow shoppers to play

with the Kindle Fire and the rest of the Kindle Family in store before making a purchase.

Kristy Haefelin 1214"The New Kindle Family." (online forum message). Amazon Press Releases. Novem 28, 2011. http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-

…as well as a wide variety of places to purchase.

Current Media Usage15

TELELVISIONCommercials

DIRECTEmail to Kindle

users and Amazon members

Vijeta Malhotra 13

PUBLIC RELATIONS Press Releases Events

INTERACTIVE Online advertisements Social Media Website

15Murph, Daren. Amazon Kindle Fire tablet unveiled: Android-based, 7-inch display, $199 price tag , "Engaget.com." Last modified September, 28, 2011. Accessed March 18, 2012. http://www.engadget.com/2011/09/28/amazon-fire-tablet-unveiled-7-inch-display-199-price-tag/.

Amazon uses a multitude of media to advertise….

Current Media Usage16

AD IMPRESSIONSThe Kindle Fire has seen a nearly 19% per day increase

in ad impressions since its release in Nov. 2011.This amounts to hundreds of thousands ad impressions

on a monthly basisAccording to Millennial Media, the Kindle Fire’s growth

in sales has slightly outperformed that of the iPad’s when it was first released in 2010.

Vijeta Malhotra 1416 Heussner, Ki Mae. Kindle Fire Outpacing First iPad Amazon tablet's ad impressions have grown 19% daily since launch, "Adage.com.”Last modified December 20, 2011. Accessed March 18, 2012. http://www.adweek.com/news/advertising-branding/kindle-fire-outpacing-first-ipad-137221.

…Which results in an increase of product awareness…

Current Media Usage17

COMMERCIALS“Three Kindles are still less than that…” commercial:

http://www.youtube.com/watch?v=sulfQHdvyEs

The commercial clearly states that at only a fraction of the price of an iPad, the Kindle Fire is superior in terms of

content as well as more affordable.

Vijeta Malhotra 1517 Kim, Eugene. New iPad vs. Kindle Fire: Which Tablet is Right for You?, "pcmag.com." Last modified March 14, 2012. Accessed March 18, 2012. http://www.pcmag.com/article2/0,2817,2401547,00.asp.

…due more specifically because of their commercials.

Current Positioning18

Amazon’s positioning of the Kindle Fire has been very simple and straightforward thus far; they have positioned on price.

With Apple as the obvious rival, Amazon’s rationale behind positioning on price is the fact that the iPad is among the most expensive in the tablet market.

By offering a more affordable alternative, Amazon is trying to reach out and build bridges for more customers in emerging markets.

Vijeta Malhotra 1618Johnston, Norm. New iPad vs. Kindle Fire: Which Tablet is Right for You?, "wpp.com." Last modified October, 2011. Accessed March 18, 2012. http://www.wpp.com/wpp/marketing/digital/kindle-fire-the-ipad-killer.htm.

…And the positioning that sets it apart from competitors.

Industry Research19

Kristy Haefelin 17

According to a survey from Forrester Research, 24 % of the 1810 US online adults aged 18+ voted they would consider buying an Amazon Kindle Fire second to the iPad. The survey was conducted in September of 2011 before the Kindle Fire’s release date.

19Lunden, Ingrid. "Forrester: No Android Tablet Has More Than 5% Share vs iPad. How Does Amazon’s Kindle Fire Compare? ." TechCrunch.com (blog), March 05, 2012. http://techcrunch.com/2012/03/05/forrester-no-android-tablet-has-more-than-5-share-vs-ipad-how-does-amazons-kindle-fire-compare/ (accessed March 15, 2012).

Consumers are ready and willing to purchase...

Industry ResearchThe tablet industry is focusing on the following four points:

Portability Size and Weight of the Tablet are becoming big factors for creators when they produce a tablet. Single tablet brands are making tablets of multiple sizes. 37% of USA tablet owners use their device at work 7

Connectivity and Interfacing Wi-Fi and/or 3G/4G To have the ability to stream videos, music, and other content across multiple platforms is a huge

deal. This means a consumer will have one account, for example, Amazon consumers can access their video streaming account on any tablet, computer, or internet connected TV. This functionality is also addressed through the cloud and is becoming a dominant feature in the tech world. 6

Content Consumers want access to as much content as possible. The ability to stream, download books,

music and games through different apps is highly desired. Consumers are looking for media rich tablets. 6 Apple’s app store’s slogan “there’s an app for everything” lets consumers know that Apple can provide them with a large variety of content. 6

Price For the Apple iPad the consumer is one with disposable income and is not effected by price6 those

that are more price conscience would perhaps go for the Kindle Fire or the Nook. Tablet creators want to give consumers the best value by pricing their tablets fairly according to what the tablet has to offer.

Kristy Haefelin 18

…but have several features to evaluate…

Industry Trends20

• According to CNET Tablet creators are focusing on three things: Budget, Premium and Mutant. Tech tactics to differentiate.

The Budget Tablet creators that are concerned with budget are offering

devices that can do the most, have the most technological power and still be available to consumers at a low cost.

The Premium A tablet with the sleekest design. Tablets that fall under this

category are comparable to the Apple iPad. These tablets are thin, have high resolution, and aesthetically pleasing.

The Mutant This category involves tablets that are unique in design and

function. Tablets that belong here are those that fold in half, and can go under water without being damaged.

Kristy Haefelin 19

20 Bell, Donald. CNET, "Tablets: Bruised and confused at CES 2012 ." Last modified January 14, 2012. Accessed March 15, 2012. http://ces.cnet.com/8301-33378_1-57358766/tablets-bruised-and-confused-at-ces-2012/.

…to find the tablet right for them.

Industry TrendsResearch on tablet advertising has found that users prefer ads that take advantage of features such as video, interactivity, and 360-degree views and other eye catching features. 21

Apple’s commercial for the New iPad is all about the “profound” technology that created the highest resolution tablet to date. 22

Kindle Fire advertisements show an easy to consume device with an anti-glare screen at a low cost with up to 5GB free cloud storage. 23

For the Nook it’s all about being the fastest lightest tablet with celebrity endorsers to prove it. 24

Kristy Haefelin 20

21CONCANNON, G. "The Difference Between Mobile and Tablet Advertising The Difference Between Mobile and Tablet Advertising ." Advertising Agency Blog (blog), February 21, 2012. http://www.advertisingagencyblog.com/automotive-advertising/the-difference-between-mobile-and-tablet-advertising (accessed March 15, 2012). 22Apple, Inc, "TV Ad: This Good." Accessed March 15, 2012. http://www.apple.com/ipad/videos/.23Reisinger, Don. CNET, "Amazon fires shot at iPad's screen glare, price in new Kindle ad ." Last modified February 9, 2012. Accessed March 15, 2012. http://

news.cnet.com/8301-13506_3-57374017-17/amazon-fires-shot-at-ipads-screen-glare-price-in-new-kindle-ad/. 24Barnes and Noble, "TV Ads: Introducing NOOK Tablet." Accessed March 15, 2012. http://www.barnesandnoble.com/u/NOOK-TV-Ads/379003318/ .

Through advertisements, they can be educated.

Competition

“As tablets are expected to overtake the volume of sales of laptops by 2015, more companies are producing tablets, which increases the competition for the Kindle Fire.” 25

25“Kindle fire lights up tablet market” October 10, 2011. GMID. Acquired February 20, 2012.

Niamh Soraghan 21

“In 2012, tablets are forecast to sell 94 million units, a 53% jump from the 62 million sold in 2011.” 26

THE FACTS:

With a high number forecast in sales, the drive in competition increases and makes it more necessary to differentiate and make the Kindle Fire more appealing than other tablet computers.

TOP COMPETITIORSApple iPadSamsung Galaxy TabletBarnes and Noble NookAsus Eee PadMotorola XOOMAcer ICONIASony TabletToshiba Thrive

26 Whitney, Lance. “iPad’s share of tablet market to dip to 62 percentthis year” Cnet. February 22,2012 http://news.cnet.com/8301-13579_3-57382808-37/ipads-share-of-tablet-market-to-dip-to-62-percent-this-year/#ixzz1nc59Icbu

With a variety of features comes a variety of competition…

Competition27

Niamh Soraghan2227“Can Any Competitior Catch the iPad?” E-Marketer, March 7,2012 http://www.emarketer.com/Article.aspx?R=1008886&ecid=a6506033675d47f881651943c21c5ed4

The Kindle Fire is expanding the tablet market and

already gaining a considerable amount of the market share.

They have the potential to increase that number in future quarters.

Apple iPad; 62%Amazon

Kindle Fire; 6%

Samsung Galaxy; 9%

Barnes and Noble Nook;

5%Other; 17%

MARKET SHARE 2011Apple ipadAmazon Kindle FireSamsung GalaxyBarnes and Noble NookOther

Brand Units Sold (Millions)

Apple 40.5Samsung 6.1Amazon 3.9Barnes and Noble

3.3

Asus 2.1Other 9.4Total 65.2

SALES 2011

…And the Kindle Fire is a fierce competitor.

Consumer Research18-24 year olds are not heavy purchasers in regards to handheld computers or e-book readers. 28

Niamh Soraghan 2328MRI Medimark REPORTER http://ureporter.mriplusonline.com.rlib.pace.edu/selectdemo.asp

With so many consumers to gain, the Kindle Fire has the opportunity to gain a large percent of market share.

In September 2011, in a survey by Pew Internet and American Life Project, 78% of people answered “No” to owning a tablet computer.28

Tablet ownership is higher amongst people with higher household incomes. 29

Only 29% of Americans owned at least one tablet or e-reader. 29

Tablet ownership is higher amongst people with a higher level of education.29

Men and women are equally likely to own a tablet.29

29 iPad, Kindle Fire Sales help Number of Tablet Owners to Soar over Holiday Season:Pew. The Huffington Post. http://www.huffingtonpost.com/2012/01/23/ipad-kindle-fire-sales_n_1222693.html January 13, 2012. Acquired on March 30, 2012.

…With a huge opportunity to become stronger.

Consumer Research

Niamh Soraghan 24

35% of students ages 18-29 answered “often to using a laptop, smart-phone or tablet computer during class time. 30

THE 18-24 YEAR OLD SEGMENT:

83% of people access the

internet on a cell phone, tablet or other device.30

Consumers purchase tablets for the unique experience of having intuitive user interface, content, applications and services at hand. 31

They want to experience what cannot be easily replicated on a PC. 31

Tablets are used to check weather reports, get headlines and local news updates, find out about local restaurants and business’, read books, magazines, and newspapers, and watch television programs and movies.30

31 Milanesi, Carolina. “iPad and Beyond: The Future of the Tablet Market. Gartner. September 2, 2012. Accessed on April 4, 2012.

30 Pew Internet and American Life Poll. As discovered on the iPoll Question Detail Database. March 4, 2012.

They understand what is desired in a tablet…

Consumer ResearchThe educated target segment

Is over 600% more likely to to be a full-time student of any kind. 38.7% of the females 18-24 are full time college

students while 27.5% of males 18-24 are a full time college student.

31.6% females 18-24 and 41.8% of males 18-24 have graduated high school.

More than half of the target demographic are white.

About 13% are Black or African American.

Nearly 6% are Asian. 12.1% females 18-24 and 14.5% males 18-24 are of another race. Kristy Haefelin

25Demographic Information from Simmons Database, accessed on April 4, 2012

…Who their target is…

Target Audience

Niamh Soraghan 26

THE 18-24 YEAR OLD SEGMENT:

They cravehigh

status

and recognition

They enjoy taking risks 32

They like to stand out in a crowd 32They want to get to the top in their career 32They like be in control of people and resources 34

They like to try new things 33

They want to pursue a life of challenge & novelty 35They believe people copy what they do and what they wear 34

They want to be viewed as brave and courageous 34

They want to be funny and amusing 33

32 SIMMONS Chart #1. See appendix33 SIMMONS Chart #2. See appendix. 34 SIMMONS Chart #3 See Appendix.35 SIMMONS Chart #4 See Appendix.

…And who the target desires to be…

27They like ads that make them laugh.

They expect advertising to be entertaining

The Internet has changed how they receive information about product and services

They spend less time watching TV because of the Internet.

They notice billboard ads.

They are not frequent listeners of the radio

They pay attention to bus and taxi cab ads, but train advertisements receive more attention of all transportation

ads

…as well as how to reach that target.

Niamh Soraghan

Kristy Haefelin

Our target looks to media for information and entertainment

Media Habits 36

According to Simmons males and females between the ages of 18-24 watch MTV, ABC, Comedy Central, TBS, USA Network and VH1 the most above other channels.

72.3% of females aged 18-21, 70.4% of females aged 22-24, 63.8% of males 18-21 and 65.9% of males 22-24 watch Prime Time TV Monday through Saturday 8pm-11pm and Sunday 7pm-11pm

These statistics show that the prime time TV bracket is the best time to advertise to the target demographic.

36 Demographic TV Viewership, Simmons. Accessed April 4, 2012Kristy Haefelin

28

There are specific networks our target likes to watch….

Media Habits 37

0.0%20.0%40.0%60.0%80.0%

100.0%Women 18-21Women 22-24Men 18-21Men 22-24

The target demographic is using the web mainly for email along with other activities. They like to stream videos, share photos, download music and chat with friends.

Online Activities

Kristy Haefelin 2937 Demographic Online Activities from Simmons Database, accessed on April 4, 2012

…as well as preferred online activity…

Media Habits 38

Adob

e Acro

bat R

eade

r

AOL M

usiciTu

nes

Lime W

ire

Napste

r

Real P

layer

Wea

ther B

ug

Window

s Med

ia Pla

yer

Yaho

o! Musi

c0.0%

20.0%40.0%60.0%80.0%

100.0% Women 18-21Women 22-24Men 18-21Men 22-24

This graph shows the web apps that the target demographic have used over the past year. The usage indicates that males and females are media driven.

Kristy Haefelin 30

Web Apps Used

38 Demographic Web App Usage from Simmons Database, accessed on April 4, 2012

…and applications that keep them tuned in…

Media Habits39

Enter

tainm

ent

Genera

l Edito

rial

Health

and F

itness New

s0.00%

40.00%

80.00% Women 18-21

Women 22-24

Men 18-21

Men 22-24

Magazine Readership

When reading magazines the target market seek entertainment, news and editorial content.

Parade Magazine

People Magazine

Smartsource

US Weekly

Time Magazine

These are some magazines that have high readership across males and females 18-24. Kristy Haefelin 3139 Demographic Magazine Readership from Simmons Database, accessed on April 4, 2012

…and magazines to keep them entertained and informed.

Primary Research

32

Primary Research Goal: We designed this survey to provide us with more insight we may have not found in our secondary research. We were looking for qualitative research about our target audience and tablet computers. In this research we hoped to find what the important attributes are to consumers so we can create an effective and successful IMC campaign.

Eugene Lee & Niamh Soraghan 33

Our Survey Consisted of 87 Respondents

67% FEMALE33% MALE

Under 17

18-21

22-24

25-34

35-54

0204060

1%

45%33%

11% 9%

AGE

Caucasian 63%Asian 16%Hispanic 9%African American

6%

Pacific Islander

1%

Native American

1%

Other 3%

…In order to discover more about our target we sent out a survey…

How prevalent is mobile technology (smart-phones, tablets & laptops) in your life?

Mobile technology has become prevalent to all, even more so for consumers between the ages of 18-24

Mobile technology is here to stay and growing, and no individual is free from its influence.Very Prevalent Somewhat

PrevalentNot Prevalent at

All

0%20%40%60%80%

100%

Very Prevalent,

86%

Somewhat Prevalent,

14% Not Preva-lent at All,

0%

Prevalence

Email50

52%

Gaming4

4%

News3

3%

Research6

6%

Shopping1

1%

Social Media (Facebook, Twit-

ter, Pinterest, blogs, etc..)

3233%

Video (TV shows, YouTube, Movies,

etc..)1

1%

Our sample shows that consumers use their mobile technology to keep up with email, social media, news and research.

34

When asked to rank 1-7 what they use mobile technology for most, 1 being the most used- our results display email being #1, Social Media #2 and News & Research #3.

…And discovered the importance of mobile technology…

We asked our sample to rank the products they use the most. #1 being the most used.

Percentages were calculated using averages

Cameras3%

Cell Phones/ Smart-phone44%

E-Readers1%

Laptops37%

Mp3s5%

Netbooks1%

Tablets9%

Top 3

Our sample shows that consumers use their cell and smart phones the most, followed by laptops and then tablet computers.

35

…And the mobile devices most important to our target.

When thinking about mobile devices which characteristics do you associate with the following companies?

Quality12%

Simplicity12%

Con-ve-

nience15%

Brand Loyalty

6%Innovative6%

Eco Friendly/Green6%

Best10%Worst

1%

Cheap11%

Reading21%

Social Networking1%Amazon

36

The top characteristics people associate with Amazon is: reading, convenience, and simplicity.

We discovered they consider Amazon to be for reading and convenience…

When thinking about mobile devices, which characteristics do you associate with the following companies? Apple has consistently topped the opinion of the sample of being: quality,

simplicity, convenience, brand loyalty, innovative, green, best, and social networking.

The only contested characteristic was reading in which the Barnes and Noble took first place with 39.98% and Amazon second with 32.2%.

Our research has shown that people do infer Amazon as “cheap” with 17.54%.

Only 1.71% of the sample thought of Amazon as social networking

37

If we want to make the Kindle Fire a success, we have to change the attitudes of consumers, making them associate more positive characteristics with the company.

…and their competitors are for quality and innovation…

When using mobile devices, which activity do you associate with the following product types?

Tablets are heavily associated with reading both books and publications, even more than e-readers. Tablets are slowly gaining consumer preference as the

device for readingBesides reading tablets are associated with all features

and uses of a smartphone, laptop and mp3 but not strongly.

We concluded people use their tablets not to replace mobile devices, but to further enhance their daily mobile needs. 3

8

Our results told us:

…yet they can all be used for the same reasons.

When purchasing an electronic device do you prefer to purchase the item in person?

82% of people would prefer to purchase an item in person.

39

Yes

No

0 10 20 30 40 50 60 70 80 90 100

82%

18%

Response

While online shopping is a convenience, people still want to make the majority of their purchases in a brick and morter store.

We learned consumers prefer to make purchases in store…

When purchasing cellphones, laptops, tablets or e-readers please indicate the most influential factor in your purchasing decision.

Reviews: 31% Brand Name:

29% Price: 14% 4

0

This is strong information, because all Amazon purchases provide a professional review for the consumer to read. As well other comparable information.

Price was not a strong factor. With Amazon’s current positioning being about price, we need to highlight other factors of the Kindle Fire to increase purchases of our consumers.

…and that reviews play an important role in their decisions.

Where do you use your tablet the most?

1. Home2. In Transit3. Work

41

Home

In Transit (Trains, Buses, etc)

Work

Library

School

26

18

10

8

9

ResponseResponse

The number one answer people gave in where they use their tablet most is in their home.

Of those with a tablet, they like to use it at home...

Using the provided scale, please pick how likely or unlikely you are to buy a tablet in the near future? (2-3 months from now)Most consumers are not interested in

buying an tablet, there is an significant percentage interested in purchasing an tablet but far from the majority.

All samplers who were very likely to purchase an tablet chose an Apple tablet.

Of those likely to purchase an tablet now 41% already own an tablet, the majority being Apple tablet owners and likely to purchase another Apple tablet in the future.

42

Very Un-likely

Unlikely Undecided Likely Very Likely

27% 25%

14%

26%

8%

%

And those without are more likely to purchase the Apple iPad.

Eugene Lee 43

Strengths1. Low Cost: is more accessible to

consumers.

2. Extensive media and publication library.

3. Amazon Silk enables faster and more efficient web browsing.

4. Eco-Friendly

Weaknesses1. Low Cost: consumer’s perceive

low cost as low quality.

2. Does not have a built in camera.

3. Perceived as a second rate iPad.

Opportunities1. Content and media streaming

2. Online Media

Threats1. Brand Image: lack of

2. Weak marketing leads to potential loss of customers.

40("Amazon Is What Customer-Focused E-Commerce Looks Like" 2009)

After analyzing the results, we determined the the Kindle Fire still has plenty of growth potential.

Creative Brief

44

Objectives

To increase Kindle Fire’s market share by 15% within one year by influencing our target audience into believing that the Kindle Fire is the trendiest and most technologically advanced tablet on the market.

To increase the perception of owning the kindle fire as being fashionable and cutting edge.

Team 4 45

Brand Advantages/Disadvantages

ADVANTAGESUnlimited cloud storage on

Whisper-Sync Affordable pricing.The Kindle Fire is lightweight

and easily portableSilk web browser can play

Flash Player Instant and easy access to

Amazon’s extensive library of apps, e-books and other media purchasing offerings.

Android software allows for smooth, simple and intuitive interface.

Laura Hinkel 46

DISADVANTAGESLimited internal storage space

with no option to expand. Lacks the built in camera and

Bluetooth connectivity feature.

Target Audience Profile

“Getting Started” Gwyneth- (18-21 years old) This person is currently beginning college, or finished at least 3 years of college. They are full time students and work less than 30 hours a week at a part time job. They enjoy owning quality goods, but may not have the money to do so. In this demographic, they are using the internet more at school than they are at home or work. They admit that they like to be the one to try something no one else has but are not overly adventurous.

“Graduated” Gary- (22-24 years old) This person is either finishing up their last year of college or graduated. They are either looking for full time jobs or graduate school. They have taken notice at how the internet/technology has changed their lifestyle and preferences. They still care about being a trendsetter and trying new products, only now they have a little extra money to do so.

“First Hand Frank”(18-24 years old) This person has not attended college. Works in a service, trade, or non-degree field and has a steady income, yet, still wants to appear educated and in-style Niamh Soraghan 47

Campaign Characteristics Insight People do not purchase the Kindle Fire because they associate low cost items

with lower profile status.

MessageThe Kindle Fire promotes recognition and status because of the premium attributes, exclusive memberships, services and benefits it features.

Umbrella Idea We will show situations in which people live vicariously through the Kindle Fire. We want them to feel like they are living an exciting, rare experience while they are using the tablet, as though it were happening in real life.  

Team 4 48

Tagline Fire you can play with Tone Hip, Fun, Exciting

Reason To Believe

Amazon is a trusted retailer that has a solid costumer base for the many years.

Amazon is the largest online retailer, they focus on rewarding loyal customers by giving their prime members perks and advantages through free streaming, free books, and personalized experiences.

The company created the Kindle in 2007, this product is vastly loved by owners. The Kindle Fire encompasses all that the Kindle can do plus other functions that today’s tablet consumers seek.

The Kindle Fire is the coolest tablet because you can not only live vicariously through it but you can have a personalized experience while using the tablet.

49 Kristy Haefelin

THE ADVERTISEMENTS

50

51

Commercial Spot #1

Time Count: 2 secVO: We are all searching

Hip, young man, sitting on a courtyard bench with his Kindle Fire…

….camera zooms in on him as he presses PLAY on his Kindle Fire.Time Count: 2 secVO: For an experience

The man is speeding in a car race with an attractive woman in the passenger seat.Time Count: 4 secVO: Experience LifeSFX: Car speeding towards the camera

Shot of the speedometer increasing.

Time Count: 1 secSFX: Car speeding

Shot of the gas pedal being floored.Time Count: 1 secSFX: Car shifting faster

Shot of the speedometer even higher –close to maxing out.Time Count: 1 secSFX: Top speed being reached

They have taken the lead in the race, and they drive off into the distance

Screenshot of the Kindle Fire

Time Count: 3VO: Fire you can play with

She sits down next to him, and he shows her the Kindle Fire.Time Count: 4VO: The all new Kindle Fire

Clip zooms out and shows him watching the clip on the Kindle Fire.Time Count: 3VO: Experience fire

Time Count: 4VO: Couple cheers (In reality he hears a girl’s voice saying…) “Hey, what are you doing?”SFX: Car flying by

Trendy, young woman listening to music on the Kindle Fire.Time Count: 2 sec

Girl listening to music on the Kindle Fire

Some excited friends rush up and whisper in her ear.

Time Count: 3 secVO: “Sometimes, in life…”

The girls quickly look up information for an underground party.Time Count: 3 secVO: “…to enjoy the experiences…”

The girls are rushing to get ready and run out the door to the party.Time Count: 3 secVO: “…you want to have…”

The group of girls are sneaking past security to get into the party. Time Count: 5 sec VO: “…there are risks you have to take. “

After successfully making it in, they pop up in the crowd having a blast.(Adele’s “Set Fire to the Rain” song either being played and/or remixed) –

Time Count: 3 sec VO: “Other times...”

The camera shot pans to the stage to show only the DJ artist.Time Count: 2 secVO: “there is the Kindle fire.”(~FIRE~)

The camera, focused on the stage, zooms out to show it is actually being watched on the Kindle Fire.Time Count: 4 secthe main girl you saw holding it in the beginning.VO: “Movies, Music, Magazines.”Screen shot of the Kindle Fire.

(possibly showing the adobe flash player)

Time Count: 3 secVO: “The Kindle Fire.”

Screen shot of the Kindle Fire with the Logo and fire outline pops up.Time Count: 3 secVO: “Fire you can play with.”

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BELOW THE LINE PROGRAMS

55

Sales Promotion

Niamh Soraghan 56

We are going to offer a free e-text book from the Amazon Bookstore when students purchase the tablet.

With the high cost of college textbooks, this would be a strong incentive for students to buy the kindle fire tablet.

It is appealing for students not to have to carry textbooks around. We hope the promotion drives sales not only of the kindle fire but also textbook sales in the Amazon Bookstore.

For this promotion we will advertise thepromotion on the Amazon website. Students will be given a coupon code to apply when checking out in the Amazon Textbook store. We will allocate $250,000 for the promotion of the free text book. Assuming that we sell 100 Kindles at 50 colleges.

Direct ResponseBy collaborating with major retailers of the Kindle Fire such as Target, Best Buy, and Radio Shack, we will invite their members only, or frequent buyers to visit the store for a special demonstration of the Kindle Fire. Not only does it make the consumer feel like a VIP but it raises their awareness of the Kindle Fire, even if they do not visit the store.

Niamh Soraghan 57

As a valued rewards member, we invite you to visit us for an EXCLUSIVE demonstration of the all new kindle fire

JOE SCHMOE49 GROVE STNEW YORK NY

Visit your closest Best Buy at 60W 23rd St.

Sponsorship We will sponsor the 2012 MTV Video Music Awards. It targets the exact demographic we are trying to

reach and awards artists of music, tv, and movies, which can all be experienced on the kindle fire.

“This year's VMA’s scored MTV's biggest audience in the network's history with a record-breaking 12.4 million total viewers.” 41

We will allocate $4,797,326 to sponsor these awards.

Niamh Soraghan 5841 Kaufman, Gil. “MTV Announces Dates for 2021 VMAs Movie Awards. MTV. Com.October 20, 2011 http://www.mtv.com/news/articles/1672851/2012-vmas-mtv-movie-awards.jhtml. Accessed April 8, 2012

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