“The Only Way To Beat The Competition

Is To Stop Trying To Beat The

Competition.”

W Chan Kim & Renee Mauborgne

Marina Grondona Oskar HollandNikka Viola Jesper NydenAmanda Larsson

January 27th, 2015

Arrest Sales DeclineCreate Plans For Growth

Goals

1. Cheaper Competitors 2. The Demand For Print Books3. Increase Foot Traffic4. New Alternative Revenues

Key Challenges

Opportunities Underserved Markets

Real Estate Legacy

1. Reinvent Barnes & Noble2. E-commerce Warehouses

Strategies

“To E-Shoppers Who Want To Experience A

Product In Person Barnes & Noble Is The

One Stop Destination For Lifestyle Digital

Brands.”

● Subleasing Store Space ● Digital Brands Merchandise ● Books and E-Books● The Service Of Expertise● Starbucks Oasis

Reinvent Barnes & Noble

● Using Less-Popular Barnes & Noble As E-Commerce Warehouse For E-Retailers.

E-commerce Warehouses

Marketing Mix

Products

● Books and Nook ● Digital Brands Merchandise ● Memberships● Real Estate

Books and Nook

Source: Statista

Source: Statista

Books and Nook● Physical Stores ● Same Day Delivery ● Samsung Merger ● Pricing Strategy - Advertise, advertise,

advertise!

Physical Space For Digital Brands

● Curating Goods From Local Artist● User-friendly experience● Benefit sellers and appeal to customers● Variety of goods = fresh inventory ● Stocking fee or cut of profits. ● Barnes and Noble as a neighborly brand.

IMPROVED Membership Benefits● $50.00/year annual fee● 40% Discount on Hardcover Bestsellers● 20% Discount on Media and Digital● 10% Discount on Everything Else● Free 2-Day Shipping● Same Day Delivery ● One month free of Kid’s Book Club

Kid’s Club Membership● Free Membership + Welcome Gift● Birthday Special Treat● Nanny Service● (Optional) Book Club: $24.95/month

○ Free Delivery of 3 books a month based on child’s age

E-Commerce Market - 6.7 Trillion by 2020. + 20 Stores Per Year Located In Less

Productive Areas Leasing Out Stores To E-Retailers

Real Estate

168 Billion Industry - 5.5% Growth Between 2009-2014

In-Store Activities:● Book Signing

(existing) ● Lectures - podcasted ● Kickstarter● Pinterest

PromotionDigital Promotion: ● Mark Zuckerberg's

book club ● E-brands

independent promotion

● Cross-promotion

In-store● Subleasing Space To

Digital Vendors. ● Re-Design Stores Into

Contemporary.● Starbucks Oasis. ● B&N Kids Club● E-commerce Warehouses

PlaceOnline-Website

BNCollege

Nook

In-Store Starbucks Oasis● Mandatory For All Stores● Revenue In Terms Of Rent ● Promote The Relaxation Area● Attract Starbucks Customers

● “Circle Time” Set Up For Book Readings● Board Games & Toys - Family Hangout● “Nanny Area”● Activities | Weekly Events

Barnes & Nobles Kids Club

Price

Amazon Paperback $14.64 B&N Paperback $15.22

Amazon Kindle $11.98B&N Nook $14.10

Amazon Paperback $22.17B&N Paperback $22.05

Amazon Kindle $18.99B&N Nook $2.99

● Match or lower competition price of popular titles.

● Rise prices of less popular titles.

Price

Year 1.● Implement The Concept In 50 Key Stores

○ New Culture for Employees○ Better Customer Experience

● 20 New E-Warehouses● A Starbucks Oasis In Every Store

Steps and Key Dates

Year 2. ● Implement The Concept In Another 70

Stores ● Another 20 New E-Warehouses

Steps and Key Dates

Renovation: $150,000/store Total: $7.5M - 50 Key Stores

Advertising CostsMagazines: $320,000/yearSunday Newspaper: $336,000/year

Web Marketing: $12,000/year

Costs

Conclusion

“To E-Shoppers Who Want To Experience A

Product In Person Barnes & Noble Is The

One Stop Destination For Lifestyle Digital

Brands.”

Q & A Time!

Appendixes

In its Security and Exchange filing, the bookseller said it would pay Pearson $13.75 million in cash and 602,927 shares of Barnes & Noble's common stock.

B&N also recently bought back the near 17 percent of Nook Media it sold to Microsoft in 2012, giving the bookseller 100 percent ownership of its flagging e-reader division.

These deals likely foreshadow a move investors have urged for years: splitting Nook Media into its own company, separate from B&N's retail consumer bookstores and Website. This split is expected to happen by the end of August.

Nook possibly splitting from Barnes and Noble