Marketing Environment
Barnes & Noble (B&N) is one of the largest book retailers in the US, with annual sales exceeding 190 million books (McLoughlin, 2023). This company has the advantage of traditional roots, as B&N was established back in 1886 and has grown to 600 operating stores since its inception (Keshavjee, 2013; McLoughlin, 2023). In doing so, the company has not focused solely on traditional sales methods; instead, it has rapidly and successfully adapted to changes in consumer behavior.
PESTEL Analysis
Politics
Political attributes have a strong influence on B&N’s commercial activities. Prohibition and censorship of certain books by politicians are not uncommon, with the main reasons for bans being the promotion of religious or radical values, intolerance, or, more generally, the incompatibility of the values expressed by authors with social development (Aucoin, 2021; B&N, n.d.-f). Although bans have fallen in intensity since the 1990s, in the post-pandemic year 2022, their frequency has risen sharply (Curcic, 2023a).
The introduction of such bans has the potential to affect B&N’s profitability, which depends directly on the number of products sold. Political factors also include the sales tax used in the US: online book sales between states may be subject to an additional tax (ABA, n.d.). The deterioration of supply chain efficiency caused by COVID-19, as well as social constraints resulting in reduced productivity of distribution centers as part of quarantine policies, has had a negative impact on the delivery capacity of online goods (Suguna et al., 2022). Nevertheless, data show that in 2020, the number of online books sold increased by 0.63 percentage points (Curcic, 2023b).
Economics
Demand and supply curves are fundamental factors influencing the success of the B&N brand. According to Watson (2020a), revenues have declined steadily for eight years since 2012, reaching a low of $3.48 billion by 2019 (Figure 1). The drop in revenues could be an indication of ineffective market policies, a decline in competitiveness, or a decrease in public interest in reading books.
However, according to Swift and Ander (2017), the frequency of reading by Americans has not changed much over the last 40 years (Figure 2). Consequently, increasing competition, especially from Amazon as the largest retailer in the industry, and declining operational efficiency are the leading causes of the brand’s falling economic appeal (Bourne, 2019).
This has led to the need to close more than 13.6% (or 150) of retail stores in the still pre-pandemic period (Figure 3). The argument for poor operational management is supported by the company’s consistently negative profits from 2012 to 2019 (Figure 4). There is no denying the pandemic factor: forced to close retail stores for a period, B&N experienced a drop in sales from print books of almost 1.4%; however, growth in audiobook and e-commerce sales compensated for this drop, so overall one can say that the impact of the pandemic was temporary and not that significant for the brand (Curcic, 2023b).
Society
The development of educational technology and the widespread shift towards remote forms of learning and work involving the use of e-publishers is a positive trend for B&N (Castro, 2019). In 2022, the brand signed a contract with Gardner-Webb University to establish a library system and supply educational books, aiming to reduce the bottom-line cost for students and create a favorable environment for book consumption (Mmunic & April, 2022). The educational literature segment is expected to exhibit steady growth of up to 2% annually by 2030 (Curcic, 2023b).
Although the core audience of bookstores is adults, there is a rejuvenation of B&N’s target audience, as 46% of the chain’s customers in 2022-2023 were aged 18 to 29 (Curcic, 2023b; Kunst, 2023). This correlates with a 500% increase in B&N’s manga sales from 2019 to 2023, as the primary audience for Japanese graphic novels is young consumers (McLoughlin, 2023; Guo & Zeng, 2020). The introduction of social and physical restrictions caused by COVID-19 worsened opportunities for selling printed books but increased sales of online goods as many people were forced to stay home during quarantine (Curcic, 2023b; Suguna et al., 2022).
Technology
The increasing digitalization of society is clearly leading to an increase in the consumption of electronic content, including online books. Although print books still form the basis of company sales, Curcic (2023b) predicts that this will stagnate over the next five years; however, sales of online books and audiobooks are expected to increase by 27%, also due to the digitalization of consumption. As early as 1997, B&N launched a web-based platform for online book sales, and by 2009, it had created its own reading app, NOOK, which often became the most popular according to user feedback (B&N, n.d.-a; Wunker, 2011).
The branded reading app NOOK, which has repeatedly topped the rankings among similar platforms, has shown a steady decline in sales since 2012, with a decrease of more than 90% by 2019 (Figure 5) (Watson, 2020c; Wunker, 2011). The pandemic restrictions have only strengthened the position of online publishers, resulting in a 19.74 and 30.25 percentage point increase in audiobook and online book sales, respectively (Curcic, 2023b; Guren et al., 2021).
B&N actively uses technology to track marketing performance, for example, by implementing Google Analytics platforms for monitoring or databases to simplify the management of extensive bookshelves (Crunchbase, 2023). However, Villanova-Marquez (2017) criticizes the company’s current technological sophistication, pointing to empty claims and ineffective, lagging steps towards digitalization that contribute to a significant lag behind its main competitor, Amazon, which, along with falling sales, seems a valid criticism (Watson, 2020c).
Environment
The use of e-publishing and audiobooks, which is expected to experience a significant increase, has the potential to positively impact brand awareness by reducing paper usage (Heikkurinen et al., 2019). According to NWA, B&N achieved a recycling rate of 67%, resulting in savings of up to $160,000 over a three-year period (Esposito, 2021). B&N is establishing a code of ethical conduct with its suppliers, focusing on compliance with laws, consideration of stakeholder views, delegation of responsibility, and avoidance of conflicts of interest (B&N, 2017).
Legislation
B&N is obliged to comply with US law, including in the implementation of marketing strategies. The 1991 TCPA prohibits companies from automatically calling customers with promotional offers, and the 2003 CAN-SPAM Act empowers recipients of emails to opt out of marketing mailings (US Congress, n.d.; FTC, 2009). With over 23,000 employees, B&N is obligated to comply with relevant legal provisions regarding labor policies, strictly enforce anti-discrimination policies, and pay fair wages (Washienko, 2021). Copyright of publications is an essential attribute of B&N’s business, as the release of infringing books could lead to litigation. The company was already a defendant in Nguyen v. Barnes & Noble Inc., and a repeat of cases could have a negative impact on the brand’s reputation (Kim, 2016).
SWOT Analysis
B&N’s marketing environment is ambiguous and complex, with some trends and patterns driving brand growth, while others contribute to a market decline. Notably, COVID-19, one of the significant threats of 2020 and 2021, proved to be a minor blow to B&N, and the company recovered from it rather quickly and painlessly (Curcic, 2023b). The SWOT analysis for the brand given below is worthwhile to examine in more detail.
Strengths
- Brand history and family traditionality (Keshavjee, 2013).
- High brand awareness.
- A proprietary NOOK platform (Wunker, 2011).
- Wide geographical reach (McLoughlin, 2023).
- Experience of success in entering new markets (McLoughlin, 2023).
- Broad range of book products.
- Resilience to COVID-19.
- Efficient supply chain (Bourne, 2019).
- Lack of strict centralization of management, ample opportunities for branches (Sloan, 2021).
- Use of digital technologies to implement marketing strategies.
- High differentiation of services, availability of the same-name café, and BNED.
- Code of ethics in cooperation with suppliers (B&N, n.d.-e).
- Environmental responsibility of the brand (Esposito, 2021).
Weaknesses
- Continuous decline in revenue (Watson, 2020a).
- Decline in net profit figures (Watson, 2020b).
- Falling sales of both printed books and e-books (Figure 6).
- Inefficient, disruptive management (Raath, 2021).
Opportunities
- Increasing the autonomy of individual stores (Sloan, 2021).
- Redesigning stores, allowing customers to spend time, have a coffee, and read a book (Dagger & Danaher, 2014).
- Closer integration with local communities (Raath, 2021).
- Expansion of the digital segment’s offerings.
- Development of strategic partnerships with educational institutions.
- Entry into foreign markets (Kounkel, 2023).
Threats
- Increased government censorship of book publishing (Aucoin, 2021).
- A higher tax base leads to lower net profits (ABA, n.d.).
- Future pandemics and environmental disasters (Baker & Thrasher, 2023).
- Increased competition from Amazon to offer better terms to customers.
- Technical problems on the NOOK side are leading to a drop in platform performance (B&N, n.d.-g).
- Lawsuits and consumer dissatisfaction (Kim, 2016).
- Financial instability leading to reduced net revenues and the inability to invest in the development of new business tools.
- Cybersecurity threats affecting corporate and user data security (Banham, 2017).
- Piracy and theft of electronic publications.
As can be seen from the analysis, B&N has many strengths that quantitatively outweigh the brand’s weaknesses. However, importantly, qualitatively, B&N’s weaknesses prove to be more significant: the almost continuous drop in net profit is a negative signal for the business, potentially leading to a crisis or even collapse (D’Amato, 2020). Combined with poor management at the administrative level and Amazon’s strengthening position, especially in e-commerce, the company’s decline in the absence of landmark transformations could become a reality (Raath, 2021). Reduced revenues could, among other things, negatively impact the customer service experience, especially if the company has to lay off employees, reduce working hours, or resort to other cost-cutting measures (Ghadge et al., 2021).
To implement successful strategies, B&N must pay particular attention to changing market trends and consumers. One such pattern is localization, namely, moving business to the community level and creating closer links with local suppliers, audiences, and organizations. Although some level of decentralization is relatively recent in B&N, the localization strategy needs to be expanded and intensified (Sloan, 2021). If such decentralization is supplemented by a history of the brand family, which is a strength of B&N, it is expected to increase community engagement, with an eventual positive impact on sales (Keshavjee, 2013). However, it is worth bearing in mind that the lack of any decentralization can lead to poor coordination, so a balance is needed.
Changes need to be implemented at the level of financial performance. The integration of financial instability and increased competition, as identified in the SWOT analysis, highlights weaknesses and threats that create a pessimistic scenario for the company. Figure 6 shows a decline in sales of both printed and electronic book products, indicating a downward trend for the company. One possibility already being pursued is the acquisition of other businesses to expand their reach and customer base, as well as to optimize internal processes (Anwer et al., 2020).
Anderson (2019) points to such a takeover in 2019, when Elliot Management, an investment management firm, decided to acquire the brand for $683 million. Putting management into more competent hands could be a good decision in the long-term solution to achieve financial stability, but there is a risk of losing identity. Given that the expert community currently perceives B&N as a critical bulwark against Amazon, a takeover by a financial conglomerate could have a negative impact on the brand’s consumer perception (Bourne, 2019).
Technology plays a crucial role in B&N’s analysis and is a key focus for the company. The primary driver of digital progress within the company is the NOOK platform, the utilization of business intelligence for informed decision-making, and maintaining the web-based e-store’s operational functionality for product ordering (Ashrafi, 2019). In this context, the primary challenge for B&N mustn’t be so much Amazon, with its ever-expanding capabilities, but rather technological progress, a wave that is difficult to catch up with (Anderson, 2019).
This wave can be grasped much more easily by competitors, who are easily adaptable to changes that will allow them to gain a market advantage. In this context, it is easy to draw the erroneous conclusion that the best solution for B&N is to shift its focus to e-books. In reality, and according to Perrin (2016), this strategy is unwarranted because a small proportion of consumers only prefer e-books. For the majority, printed books remain preferred even in an era of increased digitalization.
Porter’s Five Forces Analysis
Competition in the Industry
The level of competition in the US for the retail and e-book sector is high, including through the presence of Amazon (Abraham, 2023). With the ability to scale up and optimize production, Amazon can offer much better deals to B&N customers, which creates a high risk of consumer turnover (Sloan, 2021). The compulsion to continually improve in the face of domestic financial instability proves difficult, allowing other existing market players to surpass B&N’s success. The level of competition in the analyzed sector is exceptionally high.
The Potential of New Entrants
B&N has the serious market power to compete effectively with an industry giant like Amazon. As one of the largest retail businesses in the industry, B&N may not be concerned about the threat of entry by significant and substantial competitors; however, efforts should be made to maintain and expand its current positions (Raff & Fader, 2013). Since the capital required to open retail stores, purchase equipment and products, and set up e-commerce systems is relatively high, the threat of entry by new market players is moderate to moderately low.
Competition can be expected from an e-commerce-only perspective if new businesses focus on creating a more consumer-friendly and profitable online reading platform (Wang et al., 2016). However, given B&N’s average focus on e-commerce and the low share of sales in this segment (only about 20%, Figure 7), such a threat, while real, is difficult to classify as high.
The Power of Suppliers
Although B&N does not report an exact number of suppliers, the large number of book titles, geographical distribution, and the presence of different versions of the same book on the brand’s network hint at low supplier power. However, when it comes to large publishers (for example, Random House and Bantam Doubleday Dell) with whom the brand collaborates, their negotiating power can be significant, which increases the level of this power (Holt, 1999). The power of suppliers should be assessed as moderate.
Customer Power
Customers are the ultimate consumers of B&N products, and their demands, intentions, and interests determine network sales. When customers have more choices, a description of the current market sector, characterized by Amazon and emerging online competitors, as well as piracy, their power appears excessive (Wang et al., 2016; Li et al., 2021). A rejection of B&N’s product offerings by customers would lead the business to collapse, in which case even having its own café and NOOK would not be a salvation for the company. Thus, customers have high power.
The Threat of Substitute Goods
It is easy to assume that e-books could become a substitute for print publications, which, especially with the brand’s almost 80% focus on print products (Figure 7), could be a blow to B&N (Watson, 2020d). The brand has a unique platform, NOOK, distinguished by its user-friendliness (Barnes & Noble, 2020). The threat from substitution is not high but rather classified as medium because even in areas where substitution can be comparably easily made (online commerce), B&N has advantages.
Marketing Segmentation
Segmentation and Targeting
To effectively plan and implement marketing strategies, it is paramount to identify the segments in which B&N is represented and the target audience for the brand. Examining statistical data reveals that the US is one of the leading markets for book consumption, with a moderate number of titles released annually (Kovač et al., 2017). The reading trend has remained virtually unchanged over the past few decades, with approximately 75% of American adults having read at least one book in the past 12 months (Faverio & Perrin, 2022; Swift & Ander, 2017). The book sales industry is projected to show little change in the future, with the industry slowly recovering after some decline in print purchases caused by COVID-19 (Figure 8) (Alda, 2023).
From other demographic data, the average number of books read was 14. Historical novels (41%), mystery stories (40%), and biographies (38%) stand out as the most popular genres for the American consumer, but fantasy (34%), science fiction (31%), and melodrama (27%) are also popular genres (Leonhardt, 2023). Reading exclusively print books is preferred by 32% of Americans, and a similar number (33%) balance their reading between print and online books (Faverio & Perrin, 2022).
The age distribution also makes sense: the primary age audience of B&N is between 18 and 29 years old (46%) (Kunst, 2023). In line with Faverio and Perrin (2022), younger audiences are also more likely to read books, with the authors indicating that the older the audience, the fewer books they read. Women generally tended to read more books than men (78% vs. 73%); additionally, women were more likely to read both print and online books (Figure 9).
The urban population, like more affluent individuals, tends to read more frequently than the rural population and those with lower incomes. However, it would be incorrect to say that Americans are reading more than they did in the past. According to a Gallup survey, there has been a slight decline in the percentage of people reading, with the steepest declines observed among college graduates, women, and older people (Jones, 2022). Meanwhile, women still read more than men, but there is a downward trend in this number, and the potential for the gap to disappear (Faverio & Perrin, 2022).
Based on the demographic data obtained, it is reasonable to predict the segments that B&N can utilize to implement effective marketing strategies (Kotler et al., 2020). The primary target audience comprises young people between the ages of 18 and 29, for whom reading print books is a preferred option over e-books or audiobooks. Given that the genre of Japanese manga has become one of the leading genres for B&N, introducing diverse types of literature is recommended for the young segment (McLoughlin, 2023; Guo & Zeng, 2020).
For this audience, educational literature is also important and should be introduced into platforms or retail stores and made available. For this segment, introducing digital technology, creating a comfortable reading environment in renovated retail stores, and forming community meetings can be valid engagement strategies (Jones, 2020). Given that social media is a preferred form of communication for young people, using these platforms for marketing communications instead of email makes sense (Shawky et al., 2019; Jerasa & Boffone, 2021).
The second segment should be the female audience, who, in general, read more books, preferring printed books but not neglecting e-publishing either. The most preferred genre for women is fiction, and the primary function of reading for the female segment is to obtain entertainment (Weiner, 2007). Emotionality and empathy were more characteristic of women than men (Thums et al., 2021). It is acceptable to offer more emotionally and sensually oriented books, in both print and online formats, to cater to this segment. It is also possible to create women’s reading clubs that attract local authors and help to attract a new female audience.
A third segment for B&N is the online audience, which prefers to buy only electronic publications. Faverio and Perrin (2022) report that only 30% of adults read online books, with a significantly smaller number (6%) reading e-books exclusively. The main devices used by the online segment are tablets (15%), mobile phones (13%), and desktops (11%) (Perrin, 2016). Such people do not care about ‘touching’ books before purchasing them, and the design and comfort of retail stores are not vital to them. The focus should therefore be on creating a user-friendly and optimized app that is compatible with a variety of devices, improving the buying and reading experience for the online segment.
Positioning
Figure 10 illustrates a perceptual map of B&N’s existing business attributes, plotted along the axes of public popularity and accessibility to businesses and consumers. Printed books have both increased in popularity and become more accessible — this is an area where B&N has a strength. In contrast, the least popular attributes are educational books and BNED, which have a very limited target audience (students) and, therefore, cannot be used to position on a broad segment. Strictly speaking, the attributes of print books, online books, retail stores, and NOOK are fundamental to the business, and these are the pillars on which business positioning should be based (Gigauri, 2019).
Organizing the same business attributes on the value and usability axes helps to understand what vulnerabilities B&N currently has. The NOOK platform lacks usability, as customers lose access to their purchased products in case of technical failures or breakdowns (B&N, n.d.-g). The educational products segment is not ubiquitous, and only student communities can subscribe to educational books (Sanders, 2019). It follows that key strategies for organizational growth must be built not only around assigning value to products, including through widespread public awareness, but also in their usability, considering the analysis of potential risks.
Marketing Mix Analysis
Product
A trend in modern consumption is the increasing preference for online books that can be read on mobile devices from anywhere in the world (Guren et al., 2021). The number of online users in both the US and worldwide is skyrocketing, projected to increase by nearly 30% over the next five years (SMI, 2023). A particular focus on books was evident during the COVID-19 pandemic, as large numbers of consumers found themselves confined to their homes and turned to reading for entertainment (Fickenscher, 2021).
B&N, in turn, successfully capitalized on this trend two decades ago when it first launched online books (B&N, n.d.-a). In this sense, it is appropriate to apply the Market Attractiveness (Figure 12) model to analyze the patterns of a company’s business lines, considering the challenges posed by the pandemic (Åkesson & Meiton, 2012). The e-commerce industry boasts high market appeal and business strength, enabling the company to establish a sustainable position in its niche.
B&N invested in the development of an online platform available to every consumer. The company launched the NOOK app for various operating systems, simultaneously expanding its target audience segment and responding to the growing need for online reading (B&N, 2020). A notable feature of NOOK is its unique platform production, whereas major competitors have created such applications in collaboration with other digital vendors (Wunker, 2011; McLoughlin, 2023). As Wunker points out, it is this approach, based on a deep understanding of customer needs, in-house resources, and optimal compatibility, that has enabled NOOK to be named one of the best e-book reading apps.
Price
B&N’s pricing strategy is based on proprietary technology, so even in the case of discounted offers, the company is committed to paying authors consistently and steadily (B&N, n.d.-d). The practice of product pricing is based on the complete autonomy of individual affiliates. According to Sloan (2021), the corporate office does not send a price list to the stores; instead, it allows booksellers to set their own price offers and discounts for customers based on demand and need.
For this reason, if a customer requests a discount or claims to have seen the same product at a lower price from a competitor, the company can offer the book at a reduced price (Cicatiello et al., 2019). This correlates well with the theory of Demand Elasticity, which indicates that consumers can judge the attractiveness of a product not only based on absolute value considerations but also through personal price perceptions (Calmasini, 2019).
Table 1. B&N pricing according to the strategic pricing model (Krynen, 2023).
Place
B&N offers consumers the choice of purchasing at one of its more than 600 bookstore branches or buying a book online and reading on the NOOK platform (McLoughlin, 2023). B&N offers a handy map search for the nearest bookstore or company-organized event, providing convenience in use (B&N, n.d.-b). The advantage of the distribution strategy is broader than it first appears — the company successfully ships products outside the US, allowing anyone from most countries to purchase online (B&N, n.d.-c). However, the checkout process is not standardized, and shipping costs become clear to the consumer only towards the end of the shopping cart, which is an obvious disadvantage of such a system.
The company’s logistics system is based on a distribution system in which two major centers on the West Coast are responsible for the timely delivery of products. Even in these centers, where consumers could not reach them, management took care to contain the virus during the pandemic by introducing physical and social distancing measures (B&N, 2020). The company gained success in product distribution with the acquisition of major publisher Sterling Publishing in 2002 (Barringer, 2002).
By 2022, the subsidiary engaged in a rebranding exercise to create a more attractive basis for customer retention and engagement (Milliot, 2021; Dagger & Danaher, 2014). This example from the company’s history can be seen as a successful demonstration of an attempt to enter a red ocean, which, considering the Red and Blue Oceans theory, may lead to increased competition and the need to find new, yet unoccupied niches (Madsen & Slåtten, 2019).
Table 2. Attributes of ‘place’ in the context of blue and red ocean theory (Krynen, 2023).
Promotion
One of the pillars of a company’s marketing promotion is its history spanning over 150 years (Keshavjee, 2013). It is the brand’s recognition, traditionality, and family-like nature that, according to the concept of heritage-based branding, has a positive impact on consumer perception and creates a strong basis for increased sales (Hudson, 2015; Keshavjee, 2013). However, promotional strategies are not limited to referencing historicity: B&N employs various gimmicks that attract customers.
These include free Wi-Fi in stores, exclusive offers, and informative content for authors (Best, 2011; Rayuwati et al., 2022). Since the primary goal is to attract and retain an audience, it is acceptable to utilize the AIDA model (Djubair & Ming, 2022) in conjunction with the B&N brand. Table 3 illustrates the model’s development in terms of the strategies applicable to expand the brand’s audience.
Table 3. AIDA model for B&N (Krynen, 2023)
People
The final attribute of marketing analysis is that people are the primary sources of value and labor in the company. According to corporate social responsibility theory, a brand that is responsible for sustainability, caring for communities, protecting the environment, and taking stakeholders’ interests into account can demonstrate better competitiveness and increase sales (Ashrafi et al., 2020; Kotler et al., 2020).
B&N follows this path: the company regularly hosts voluntary community events, makes significant donations, and fosters a workplace free from discrimination and oppression (BNED, n.d.). Thus, the company consistently receives high marks for its civic responsibility practices (Kozlowski, 2019). B&N has an ethical code of cooperation with suppliers, which forms the principles of a sustainable, mutually respectful and trusting partnership (B&N, n.d.-e). Thus, in terms of treating people as a key source of value for the brand, B&N is taking positive steps.
Processes
According to the Theory of Disruptive Innovation, the introduction of innovative changes in an industry market can be disruptive for a company if it is not prepared to adapt to such transformations (Si & Chen, 2020). In the context of COVID-19, B&N has shown an ability to adapt quickly and effectively to external challenges (Curcic, 2023b). The company rapidly introduced new sanitary regulations, including mandatory mask-wearing, social distancing, contactless payment options, shelf sanitation, and mobile takeaway ordering (B&N, 2020).
Although these measures have been widely implemented during the pandemic, B&N has demonstrated the ability to implement them and create a safe environment for both customers and employees. Opinion polls showed that 66% of staff approved of management’s response to the pandemic challenges, with staff often being monitored for mandatory wear of protective masks to minimize the spread of the virus (Indeed, 2022). Nevertheless, the statistics show that B&N made little or no serious effort to look after the well-being of employees working remotely: 99% of employees indicated that they did not receive any additional benefits, and 92% of respondents disagreed that management helped them work from home (Indeed, 2022).
Physical Evidence
B&N effectively took advantage of the physical constraints during the COVID-19 pandemic, when it was forced to close all its branches. Despite the closures, instead of downtime, management decided to invest in renovating them, which included renewing the product range, renegotiating contracts with suppliers and authors (Hartmans, 2023). There is an advantage in such a strategy: as Dagger and Danaher (2014) pointed out, redesigning stores helps to attract new customers effectively.
In terms of the 4P model, redesigning will help to improve (modify) product features, increase value, and/or optimize costs, optimize supply chains, and become an excellent advertising opportunity, provided it is adequately managed (Alzubi & Akkerman, 2022). This was likely one of the reasons why profits from book sales increased by 14% over the pre-pandemic year, having trended downward during the previous decade (Hartmans, 2023; McLoughlin, 2023).
Recommendations
Improving the User Interface
To improve niche sustainability and increase competitiveness, B&N can improve the user interface on the NOOK platform (Chen et al., 2020). Its customers use the interfaces on several levels, from interacting with the website to selecting books and adding them to their cart, to reading books on the NOOK app. Table 4 presents the attributes of this recommendation in accordance with SMART mechanics. Using conversion as a KPI is the most effective method for testing effectiveness, as an increase in conversion indicates the positive effects of implementing the recommendation, and vice versa. The expected results are an increase in reader users, an increase in online sales, and a decrease in regular bag sales.
Table 4. SMART goal for improving the user interface
Organizing Meetings in the Community
A second recommendation for B&N is to organize meeting evenings to strengthen the shops’ ties with the local community. Strengthening ties with local communities is made possible through theme nights, during which B&N’s local management invites local artists to address the audience in a “press release” format (SOA, 2013). Table 5 shows a breakdown of this recommendation by SMART mechanics. It is expected that organized events can increase both the visibility of the creators themselves and the popularity of the shops, with more people entering (Hawker, 2019; Kounkel). Multi-channel communications, including social media and offline advertising, emails, and text messages, can be used to post information about upcoming meetings (Suguna et al., 2022; Cai & Lo, 2020).
Table 5. SMART goal for organizing meetings in the community
For the modern consumer, it has been demonstrated, especially following the COVID-19 pandemic, that connecting with the community where they live is a crucial aspect of conscious consumption (Sloan, 2021; Kounkel, 2023). By investing in developing local authors, organizing meetings with readers, and fostering networking, B&N creates an image of a responsible brand that focuses on more than just profit (Hawker, 2019). Each shop becomes an independent brand branch, which can also help expand the target audience. This strategy is favorable and feasible and does not require much effort to implement.
However, combining the two recommendations into a single omnichannel approach is possible. In this case, a single communication system is formed between online and offline platforms, which increases customer engagement and outreach (Suguna et al., 2022; Cai & Lo, 2020; McKinsey & Company, 2022). In such multi-channelization, it is essential to ensure complete seamless connectivity so that customers can, for example, find out about future appointments and book through NOOK, and watch broadcasts from home. While in an offline shop, customers could scan QRs from books and learn more details, read reviews from other users, and find the most suitable products for their taste.
References
ABA. (n.d.). Sales tax. American Booksellers Association.
Abraham, C. (2023). Best alternative to Barnes & Noble online. Speechify.
Åkesson, E., & Meiton, C. (2012). Corporate development – Assessing the attractiveness of a new market.
Alda, M. (2023). Physical books — worldwide. Statista.
Alzubi, E., & Akkerman, R. (2022). Sustainable supply chain management practices in developing countries: An empirical study of Jordanian manufacturing companies. Cleaner Production Letters, 2, 1-15.
Anderson, A. (2019). Barnes & Noble takeover shows retail theme is technology change. Seeking Alpha.
Anwer, E., Deshpande, S., Derry, R., & Basil, D. Z. (2020). The value of values in business purchase decisions. Journal of Business & Industrial Marketing, 35(8), 1323-1334.
Ashrafi, A., Ravasan, A. Z., Trkman, P., & Afshari, S. (2019). The role of business analytics capabilities in bolstering firms’ agility and performance. International Journal of Information Management, 47, 1-15.
Ashrafi, M., Magnan, G. M., Adams, M., & Walker, T. R. (2020). Understanding the conceptual evolutionary path and theoretical underpinnings of corporate social responsibility and corporate sustainability. Sustainability, 12(3), 1-17.
Aucoin, J. (2021). Censorship in libraries: A retrospective study of banned and challenged books. SLIS Connecting, 10(2), 82-102.
B&N. (2017). Code of business conduct & ethics.
B&N. (2020). COVID-19 safety at Barnes & Noble. Barnes & Noble.
B&N. (n.d.-a). About Barnes & Noble.com. Barnes & Noble.
B&N. (n.d.-b). Search stores and events. Barnes & Noble.
B&N. (n.d.-c). International shipping. Barnes & Noble.
B&N. (n.d.-d). Pricing. Barnes & Noble.
B&N. (n.d.-e). Barnes & Noble press. Barnes and Noble Inc.
B&N. (n.d.-f). Banned books. Barnes & Noble.
B&N. (n.d.-g). NOOK apps troubleshooting. Barens & Noble.
Baker, B. K., & Thrasher, R. D. (2023). From business as usual to health for the future: Challenging the intellectual property regime to address COVID-19 and future pandemics [PDF document].
Banham, R. (2017). Cybersecurity threats proliferating for midsize and smaller businesses. Journal of Accountancy, 224(1), 1-15.
Barringer, F. (2002). Barnes & Noble takes new tack and buys Sterling Publishing. The New York Times.
Best, S., Zeigler, J., Smith, C., Whitley, J., & Cornwell, J. (2011). A case analysis of Barnes & Noble.
BNED. (n.d.). Sustainability. Investor BNED.
Bourne, M. (2019). The Future of Barnes & Noble. Poets & Writers Magazine, 47(5), 17-20.
Cai, Y. J., & Lo, C. K. (2020). Omni-channel management in the new retailing era: A systematic review and future research agenda. International Journal of Production Economics, 229, 1-16.
Calmasini, C. (2019). Information hidden costs and their influence on consumers’ price perception in the demand for online services.
Castro, R. (2019). Blended learning in higher education: Trends and capabilities. Education and Information Technologies, 24(4), 2523-2546.
Chen, T., Peng, L., Jing, B., Wu, C., Yang, J., & Cong, G. (2020). The impact of the COVID-19 pandemic on user experience with online education platforms in China. Sustainability, 12(18), 1-31.
Cicatiello, C., Secondi, L., & Principato, L. (2019). Investigating consumers’ perception of discounted suboptimal products at retail stores. Resources, 8(3), 1-10.
Crunchbase. (2023). Barnes & Noble. Crunchbase.
Curcic, D. (2023a). Banned books statistics. Words Rated.
Curcic, D. (2023b). Book sales statistics. Words Rated.
D’Amato, A. (2020). Capital structure, debt maturity, and financial crisis: empirical evidence from SMEs. Small Business Economics, 55(4), 919-941.
Dagger, T. S., & Danaher, P. J. (2014). Comparing the effect of store remodelling on new and existing customers. Journal of Marketing, 78(3), 62-80.
Djubair, R. A., & Ming, W. W. P. (2022). Relationship of AIDA model towards data analytics capabilities, marketing strategies and digital marketing performance on small and medium enterprises (SMEs). International Journal of Social Science and Education Research Studies, 2(10), 559-564.
Erdmann, A., & Ponzoa, J. M. (2021). Digital inbound marketing: Measuring the economic performance of grocery e-commerce in Europe and the USA. Technological Forecasting and Social Change, 162, 1-13.
Esposito, C. (2021). How recycling rates were boosted by NWA for Barnes & Noble, saving costs and carbon footprint. National Waste Associates.
Faverio, M., & Perrin, A. (2022). Three-in-ten Americans now read e-books. Pew Research Center.
Fickenscher, L. (2021). The pandemic has sparked a book craze — and Barnes & Noble is cashing in. New York Posts.
FTC. (2009). CAN-SPAM act: A compliance guide for business. Federal Trade Commission.
Ghadge, A., Bag, S., Goswami, M., & Tiwari, M. K. (2021). Mitigating demand risk of durable goods in online retailing. International Journal of Retail & Distribution Management, 49(2), 165-186.
Gigauri, I. (2019). Applying perceptual mapping method for successful positioning strategy. International Journal of Management and Business Sciences, 1(1), 14-23.
Guo, C., & Zeng, C. (2020). Anime and manga fandom in the 21st century: A close-up view [PDF document].
Guren, C., McIlroy, T., & Sieck, S. (2021). COVID-19 and book publishing: Impacts and insights for 2021. Publishing Research Quarterly, 37(1), 1-14.
Hartmans, A. (2023). The rise and fall — and rise again — of Barnes & Noble. Insider.
Hawker, J. M. (2019). Capital letters: The economics of academic bookselling. Cambridge University Press.
Heikkurinen, P., Young, C. W., & Morgan, E. (2019). Business for sustainable change: Extending eco-efficiency and eco-sufficiency strategies to consumers. Journal of Cleaner Production, 218, 656-664.
Holt, P. (1999). Book brawl.
Hudson, B. T. (2015). Brand heritage.
Indeed. (2022). COVID-19 response at Barnes & Noble. Indeed.
Jerasa, S., & Boffone, T. (2021). BookTok 101: TikTok, digital literacies, and out‐of‐school reading practices. Journal of Adolescent & Adult Literacy, 65(3), 219-226.
Jones, C. A. (2020). The magic of a good book: Voluntary fiction reading habits and preferences of adolescents.
Jones, J. M. (2022). Americans reading fewer books than in past. GALLUP.
Keshavjee, S. (2013). Barnes & Noble: Reading between in lines.
Kim, N. S. (2016). Online contracting. The Business Lawyer, 72(1), 243-254.
Kotler, P. T., Keller, K. L., Goodman, M., Brady, M., & Hansen, T. (2020). Marketing management (4th European edition). Pearson.
Kounkel, S. (2023). 2023 global marketing trends.
Kovač, M., Phillips, A., van der Weel, A., & Wischenbart, R. (2017). Book statistics: What are they good for? Logos, 28(4), 7-17.
Kozlowski, M. (2019). Barnes & Noble named #1 most reputable retailer in America. Good Reader.
Kunst, A. (2023). Share of Americans who storeped for books at Barnes & Noble 2023, by age. Statista.
Leonhardt, D. (2023). American book reading statistics for 2022 and 2023 (complete USA survey data). THGM Writers.
Li, X., Liao, C., & Xie, Y. (2021). Digital piracy, creative productivity, and customer care effort: Evidence from the digital publishing industry. Marketing Science, 40(4), 685-707.
Madsen, D. Ø., & Slåtten, K. (2019). Examining the emergence and evolution of Blue Ocean Strategy through the lens of management fashion theory. Social Sciences, 8(1), 1-23.
McKinsey & Company. (2022). What is omnichannel marketing? McKinsey & Company.
McLoughlin, D. (2023). Barnes and Noble statistics. Words Rated.
Milliot, J. (2021). Sterling Publishing to be revamped. PW.
Mmunic, O., & April, A. (2022). Gardner-Webb announces Barnes & Noble will manage university campus store.
Müller, J., Hoberg, K., & Fransoo, J. C. (2023). Realizing supply chain agility under time pressure: Ad hoc supply chains during the COVID‐19 pandemic. Journal of Operations Management, 69(3), 426-449.
Pallavi. (2020). Nook e-reader app: Most intuitive e-reader. MAD.
Perrin, A. (2016). Book reading 2016. Pew Research Center.
Raath, R. (2021). Will Barnes & Noble’s next chapter be its last? Forbes.
Raff, D., & Fader, P. (2013). Barnes & Noble, the last big bookseller standing: But for how long? Knowledge at Wharton.
Rayuwati, R., Yustisar, M., Gemasih, H., & Eliyin, E. (2022). The influence of price, store atmosphere and food product quality on buying interest at Tootor Coffee Takengon. International Journal of Science, Technology & Management, 3(4), 1129-1143.
Sanders, C. (2019). Let us get you into college: Community college librarians, Barnes & Noble, and OER. OLA Quarterly, 24(3), 29–39.
Shawky, S., Kubacki, K., Dietrich, T., & Weaven, S. (2019). Using social media to create engagement: A social marketing review. Journal of Social Marketing, 9(2), 204-224.
Si, S., & Chen, H. (2020). A literature review of disruptive innovation: What it is, how it works and where it goes. Journal of Engineering and Technology Management, 56, 1-10.
Sloan, A. (2021). Bookstores are dying. Barnes & Noble’s pricing policy may help explain why. The Washington Post.
SMI. (2023). eBooks – worldwide. Statista.
Suguna, M., Shah, B., Raj, S. K., & Suresh, M. (2022). A study on the influential factors of the last mile delivery projects during COVID-19 era. Operations Management Research, 1-14.
Swift, A., & Ander, S. (2017). Rumors of the demise of books greatly exaggerated. GALLUP.
The SOA. (2013). Guide for bookshops engaging authors (with checklist).
Thums, K., Artelt, C., & Wolter, I. (2021). Reading for entertainment or information reception? Gender differences in reading preferences and their impact on text-type-specific reading competences in adult readers. European Journal of Psychology of Education, 36, 339-357.
US Congress. (n.d.). S.1462 – Telephone Consumer Protection Act of 1991. Congress Gov.
Villanova-Marquez, S. (2017). Dear Barnes & Noble: Stop playing catch-up! HBR.
Wang, S., Cavusoglu, H., & Deng, Z. (2016). Early mover advantage in e-commerce platforms with low entry barriers: The role of customer relationship management capabilities. Information & Management, 53(2), 197-206.
Washienko, P. A. (2021). Regulatory and legal considerations regarding salary equity.
Watson, A. (2020a). Revenue of Barnes & Noble 2012-2019. Statista.
Watson, A. (2020b). Number of Barnes & Noble stores 2005-2019. Statista.
Watson, A. (2020c). NOOK sales 2010-2019. Statista.
Watson, A. (2020d). Barnes & Noble sales 2012-2019, by commerce segment. Statista.
Watson, A. (2021). Barnes & Noble’s net earnings 2012-2019. Statista.
Weiner, E. (2007). Why women read more than men. NPR.
Wunker, S. (2011). Barnes & Noble’s smart strategy. Harvard Business Review.