Abstract
The paper is a case study of Waterstone Books in the UK. I have studied different theories and strategies used in order to ensure that customers are satisfied in their changing preferences.
I have divided the study in different section including the introduction of the Waterstone retailer, environmental factors influencing it, adopted market segments, the behavior of consumer in decision-making, the marketing mix and problems facing the Waterstone bookseller. In addition to that, there are recommendations of the problems and a conclusion outlying the Waterstone Bookseller.
Introduction
Waterstones, which is part of HMV group, is one of the leading bookseller specialists in United Kingdom. The study looks changing consumer demand and the development in mobile industries that have led to increase in e-books reading.
This has been because of digitalization of books furthering the increased number of e-readers. The increased demands make retailers like Waterstones to expand in their services and capacity to compete fully and be efficient in supplying EBooks. This will be achieved if there is advanced technology that allows for a quick downloading of books. The formation of the Waterston’s Sony link assisted creating a wider market that is efficient and meeting all the customers preferences hence an increase in sales.
The increasing market has seen advancement in services where customers are offered an opportunity to choose their books and right devices contents reading. In partnership with the right manufacturers and other competitors retailers it will cause mobile shift that is faster in networks.
The challenge of piracy is a factor to consider due to the free ridding effect. The rules and regulations of publicity in the UK reduces the chances of piracy as the copy right is embedded with watermark that is digitalized hence can be traced. The market share of Waterstones is 20% of the electronics books that demanded in each year.
A theory can be termed as a general principle that verify facts, test hypothesis and predict the outcomes of different events and facts. Theories have to be systematic, creative, and formulated in order to be useful. They are able to combine situations, objects, behaviors, conditions, and facts in the explanation of concept.
Environmental factors
There are various environmental factors affecting the marketing of Waterstone books; they include factors that affect consumer purchasing behavior as well as the kind of competition. The theory of marketing will look at the events and facts that lead to the right strategy that are easily identifiable and analyzed.
The study will look at the environmental factors Underlying Political Economical Social and Technological analysis within which the Waterstone Books is located. The social issues affect the marketing strategy by the Waterstone’s Books since consumers have different mode of purchasing.
From the study, it is clear that most e-leaders like EBooks that are fiction, romance and related to crimes. Thus, the retail has to ensure that they have a wide variety of such books especially the most recent ones and the ones of known celebrities.
The result of digitalization of books has increased the number of e-readers hence retailers like Waterstones have expanded their services and their capacity to compete fully and be efficient in supplying EBooks (Clark G, Clark G. & Phillips A 2008, pg 99; Baker, M & Saren, M 2010 pg 123)
The technology environment has influenced a lot in the increased sales and e-readers in the Waterstone’s Books since it has allowed quick and easy purchases of the EBooks. The link with Sony and other phone providers has eased the load to e-reader as they can access books easily without physically going to bargain with the retailer.
Advancement in technology is necessary although it has led to increase in both the political and social issue within the firm. This is because piracy is on increase and online book sharing is common. The rules and regulations of publicity in the UK reduces the chances of piracy as the copy right is embedded with watermark that is digitalized hence can be traced. The digital laws is also key in the fight against piracy by ensuring copyrights hold in order to reduce online book sharing
The political environment affects Waterstones in their marketing strategy. Notably is that UK is a free country which allows the freedom of expression, movement, association and speech as long as one does not interfere with the security of other people.
Such an environment has increased the number of e-readers and retailers like waterstone Books leading to increased supplies of EBooks to meet the increasing demand. This is attributed to the fact that publishers are printing different books in order to meet the difference in tastes of customers. Due to the government regulations in the UK, there is an increase in taxation, which negatively affects the returns in the Waterstone Books
Marketing segments
The strategy used by the Waterstone Bookseller is that of supply structure and a market share that is substantial. From the study, Waterstone is able to sell an eBook in less than two minutes from the large database of different titles.
This is an evidence of wider geographical coverage countrywide. Such will ensure that customers are very satisfied and their preferences met since digitalization has enabled complete downloading of catalogues (Murphy, C 2005 pg 67)
Waterstone has different stores with some of them large enough to accommodate e-readers who browse within the premises. The firm has increased it sales by ensuring that customer in the different store have wide varieties of books.
This led to the launching of the loyalty card to the customer who tremendous increase to a figure of around two million countrywide. The website of the form part of advertisement for market enlargement as one can ask any question and appropriate answer provided.
The top management of the firm has encouraged their staff to understand different types of books in order to provide the best services to the customer, as they will be able to argue from the contents.
Consumer decision making
This is a theory on the decision consumers make in attaining their needs. It studies how they will use their income, bargaining power, tastes and preference, demand strategies and satisfaction. Accordingly, consumers will try to achieve the highest indifference curve using the budget as the constraint.
In this study, there are different retailers hence; the consumers will choose the one that is effective and efficient in both prices and supply. The increased e-readers are because they can get online books cheaply in terms of time although a bit expensive in regard to prices.
From the study, it is clear that the mobile phones industry has led to customers changing their preference for the modern and efficient ones. The need for reading EBooks makes mobile handsets like iPhone developing a creative and easy way of accessing such (Reynolds J., Cuthbertson C. & Bell R 2004 pg 87)
The increased number of retailers makes consumer links to the one that is affordable hence increasing competition of retailers in terms of services and price. The Waterstones’ retailers ended up adding a reader device in the market in order to satisfy customers more by ensuring they get the right content.
From the study, consumers do window-shopping to get the best prices due to the fall of discount rates, wars in price, agreements and market aggressive by the retailers. Consumers base their judgment on the attractiveness of the display in windows.
Accordingly, most retailers like Waterstone will have a good display showing the most appealing books or the most recent and demanded book (Alderson, W 1957 pg 127). This will automatically lead to consumer attraction since there is an additional utility of using ePud.
The increased number of stores by Waterstone is a result of increasing demand hence creating confidence in consumers on the availability of their order. Advertisement plays a big role in influencing the consumer purchasing behavior since they will tend to purchase EBooks where the prices are low and that they can easily download using phones or computers.
Their friends using the same facilities as they have a chain in purchasing on efficiency influence them. The traditional way of keeping data by consumers has changed, as they prefer EBooks that will enable them in maximum data storage and keeping while using small space. Hence more convenient and effective it can easily be traced and referred to (Aaker, D 1971 pg 231)
Marketing mix
These involve the activities underlying the marketing that includes product management, promotion, placement, and price policy. Under the product management, Waterstone has ensured that its marketing department is familiar with their customer’s needs as well as the total number of competitors in the EBook.
This has led to the increased researches on necessary improvements in the provision of services that is different from that of competitors. This led to the introduction of ePud in order to meet the needs and views of the leaders.
It is the way they display their books that effect on the number of customers Waterstone Books ensure that the display is vey attractive and that the most recognized and highly demanded book is in front without forgetting the ones for the branded authors in the market (Clark G, Clark G. & Phillips, A 2008 pg 173)
Under the placement policy, all customers get their orders all ever since Waterstone Books has over three hundred stores countrywide. This ensures that demand can be met hence the consumer satisfaction and loyalty to the firm.
The management of the Waterstone has indentified the region with the highest number of sale by looking at the market share hence are able too follow the right distribution and sales channel. This led to supply chain development and full investment on it in order to allow for efficient system of distribution that is centralized.
Accordingly, Waterstone retailer uses different ways of increasing sales and the growth of the firm by effectively availing all the customers’ requirement electronically. From the study, it is clear that most e-leaders like EBooks that are fiction, romance and related to crimes. Hence, it is the management of the Waterstone retailer ensures that the new and the best selling books of search are available.
The role of promotion in Waterstone Books is to fuel demand of the available varieties books in the stores. The firm has divided it offers in various categories depending on their sales volume and performances.
The firm thus advocates the use of catalogues within the bookshop where there are sufficient space or outdoors advertisements in combination with e marketing. For ease promotion, the staff of Waterstone ensures that all books and order received goes through the process of proper packing, pricing, stickering and coding (Clark G, Clark G. & Phillips, A 2008 pg 179).
The firm also adapts the pricing policy that ensures that all customers get their order depending on their pocket. Thus, one gets the pages of the book needed without purchasing the whole book online.
Problems facing Waterstones
The Waterstone Books faces different challenges’ in the implementation of various strategies. The first is the maximization of the sales in each store countrywide. This can be so if all the sales opportunities available are fully utilized and maximized to increase the returns of the firm.
Accordingly, in the maximization of the profits from the sale the firm faces competition that is stiff due to the fall in the price wars, discounting rates, aggressiveness in the market and the market share agreements. This is what led to the increase in supply chain in the countrywide to ensure all needs are meet.
The second challenge faced by the Waterstone is the attitude of the customers. Most e-readers assume that all online materials and books are offered freely and available at a cheap cost. Therefore, the problem facing the Booksellers the willingness of such customers to accept to pay for the online services and premium needed for delivery if unable to make to personally visit the book shop (Clark G, Clark G. & Phillips, A 2008 pg 184).
Third is the existence and increasing piracy fears in the industry. An example is the music piracy that is has developed from the business cycle and the free riders in the market since internet in like a public good. It can also be as a result success curse where customer likes to be associated with the firm hence, innovating survival tactics of getting the same materials cheaply.
Due to lack of proper and lawful regulation, the piracy is on the increase even if the government holds the copyright.
In addition to that, technology tends to be a challenge in the marketing and efficiency of the Waterstone Book seller. Even if it uses the best and the most advanced technology, sometime the demand is more that they can meet. More so, technology can be functional in one area and less in the other so, total dependency and assumption of the increase in the sales of EBook due to the increase demand would be misleading.
Recommendation
In order to increase the total sale and outcome, management of Waterstone Book sellers should ensure that their services and brands of authors are differentiated from those of their competitors. This would automatic increase trust of e-readers since the differentiated brands will be available online and in all the stores countrywide. The management of Waterstone should look into a future merging and agreement with other supportive organization in the region.
The government in conjunction with booksellers and publisher should come with the right rules regarding piracy and way of coping with it. Despite the watermark embedded on the copy right to ensure possible tracing of materials, there should be fines attached to the breakages of such in order to set an example to the already existing and coming pirates. The fee should be high such that one will fear to interfere with the copyrights reserves.
Moreover, the management of Waterstone bookseller should ensure that there is a balance between the environmental factors influencing marketing, adaptation of proper marketing segments, factors influencing the behavior of consumer in decision-making and conducive marketing mix.
Notably is the advertisement strategy that influences customers on the type of books to purchase. Form the study, most e-readers are influenced by the decision of their friend and family hence the services provided by the Waterstone bookseller should be of high standards and most attractive to uphold the loyalty in customers.
Conclusion
In this global era, for Waterstone to be competitive in the eBooks, it should support technology initiatives in management in order to enhance development competence. The study captures various ways in which the management can see through the success of the increasing online reading and purchasing of soft copies materials.
However, it is affected by inadequate sources of capital, lack in the willingness to purchase and pay premiums, poor infrastructure in information technology and poor organizational structures (Alderson, W 1957pg 179). It is considerably important to ensure that Political Economical Social and Technological environmental factors affecting Waterstone Books are in equilibrium to each other.
Finally, for Waterstone to be effective in customer satisfaction and increasing its returns, everything including goals, process, products, purposes, and administration to be reviewed for quick adoption of new requirements.
The study has highlighted the contribution of different approaches and their contributions to success in marketing strategies of Waterstone in the eBooks. It has also concentrated on the marketing theories either new or old, tools, technologies deployment, Organization structures, and the attitude of consumer decision in purchasing books.
References
Aaker, D 1971, Visual Clustering Using Principal Components Analysis, Multivariate Analysis in Marketing: Theory and Application. Belmont, California.
Alderson, W 1957, Marketing behavior and executive action, Homewood, Irwan Baker, M & Saren, M 2010, Marketing Theory, Sage, New York Clark G, Clark G. & Phillips, A 2008, Inside book, Taylor & Francis, London.
Hunt, S 2010, Marketing theory: foundations, controversy, strategy, resource- advantage theory, Sharpe, New York.
Murphy, C 2005, Competitive intelligence: gathering, analysing and putting it to work, Gower Publishing, UK.
Reynolds J., Cuthbertson C. & Bell R 2004, Retail strategy: the view from the bridge, Butterworth, Heinemann.