Indigo
How have changes affected their pricing strategies?
Changes in the bookselling business enabled Indigo to review their pricing strategy to include penetration pricing as well as market-oriented pricing. The company used penetration pricing when they offered discounts to customers by slashing book prices and offering incentives such as free shipping to induce customers to buy from their stores. They later adopted a market-oriented pricing strategy where they commissioned a research study to find out prices charged by competitors. After analyzing the study, they were able to offer real bargains to their customers by discounting their prices.
How have changes affected they’re the actual products they sell
These changes enabled Indigo to adapt to the changing demands and lifestyles of consumers. Initially, they were selling hardcover books in stores and cafes. They later changed to selling soft copies of the books over the electronic media or the internet where readers pay to download the whole book or chapters of the book. This digital service was to offer clients with smartphones an application for downloading a book, chapters, short stories, blogs, and news articles. Furthermore, the company was able to design software, which allowed consumers to buy electronic books and build digital libraries on their mobile phones or tablets.
How have changes affected their distribution strategies?
At first, the company developed the model of combining with giant independent bookstores, including cafes and reading nooks. They later decided to on a takeover bid for Chapters Company and merged with its outlets. They also acquired publishers’ sole rights in distribution. When this venture became untenable, Indigo had to reinvent itself to adjust to competition by introducing electronic books, which they sold online to consumers after acquiring the requisite copyrights.
Kobo
How have changes affected their pricing strategies?
Kobo developed a pricing strategy that was appealing to the average reader as the prices were relatively cheaper. Based on the findings of a research commissioned by Indigo, it appeared that a passionate Canadian reader spent $200 a year on books. With this in mind, the company was able to charge lower prices for Kobo, which was loaded with classic out-of-copyright titles. Later, another firm known Mikitian bought it for $375 million.
How have changes affected the Actual Products they sell
Initially, the company found a manufacturer in Taiwan that agreed to the tight schedule of producing the Kobo within four months in readiness for the launch of the product. However, there were some minor setbacks as the products had the wrong power cords and the earlier editions of the Kobo did not have Wi-Fi connections. Within a year, Kobo was able to do technical enhancements to make the application more user- friendly and improve on speed which was key a key ingredient in increasing its revenue and making Kobo the e-reader of choice for booksellers and retailers.
How have changes affected their distribution?
Organizations normally use a mix of different channels, (Neves et al, 2001). Kobo initially came in the stores whereby readers flocked the nooks to access the electronic library. After enhancing the software, the proprietor took the strategy of launching the service globally. This strategy actually paid off when Kobo ranked the third e-reader shop after Amazon and Barnes & Noble as they had enabled anyone with a smartphone to download the application and access the electronic books.
Reference
Neves, M. F., Marcos, P. Z. & Campomar, C. (2001). A model for the distribution channels planning process. Sao Paulo, Brazil: Business Department, School of Economics and Business, University of Sao Paulo.