Individual brand SWOT analysis Reserved for; Hifsa Shaukat

P R E S E N T E D B Y : J O H N D O R I G H T

BRAND PRESENTATION: KOBO

PRESENTED TO: Professor Bureau

May 24, 2014

(Kobo, 2013)

KOBO BACKGROUND

History The first Kobo eReader was sold in 2010 (Euromonitor, 2012, p 1). The company was sold in 2012 to Rakuten Inc, the largest e- commerce company in Japan. Kobo’s headquarters are in Toronto, ON (Euromonitor, 2012, p 1). Kobo not only manufacturers their own brand of eReaders, but has also developed tablets and applications for the ipad and android platforms (Euromonitor, 2012, p 1).

Performance Kobo currently has 14.5 million registered users (“Kobo bucks softening”, 2013, para 2), with most users based in Canada. Kobo is the fastest growing eReader, with growth of 145.% in Q1 2013 and a market share of 46% (kobocafe, 2013).

KOBO – SEGMENTATION CHART

KOBO – SEGMENTATION CHART

• Primary segment is the Passionate Reader • Reasons:

• Interested in ‘reading’ functionality and applications and less concerned about other cutting edge technology.

• Want a wide range of reading material available that is easily accessible and easy to read.

• Want to be connected to other readers as part of their social life. • Reading is a serious hobby for them and they spend a lot of time

doing it (World Newsmedia Network, 2012, p 85).

• The Parental Educators may be likely to lean towards a tablet, which offers greater functionality that may be more child-friendly and provide more interesting learning applications.

KOBO

PRODUCT:

• Wide range of eReaders of different size, functionality and prices (Purewal, 2013, para 1)

• Over 3 million ebooks are available (kobocafe, 2013)

PRICE:

• Broad range of devices at varying price points, depending on the number of functions (Best Buy, 2013)

• Priced from $39.99 - $299.99 (Best Buy, 2013)

KOBO – PLACE AND PROMOTION

Television Commercials

Bu s

Sh e

lte rs

Billboards

PLACE: • Available in 17,600 stores worldwide (kobokafe, 2013) • In Canada, available in Best Buy, Indigo-Chapters, Toys R Us, and

Walmart (kobocafe, 2013)

PROMOTION(Bhatt, 2013): • Kobo advertises on television, print, billboards

and bus shelters • Kobo uses social media and has a

comprehensive website

KOBO – SWOT - STRENGTHS

• Kobo Pulse integration with social media (Velazco, 2011)

• Named the best eReader by the Wall Street Journal (kobocafe, 2013, “Kobo’s bet to double down”)

• Over 3.5 million ebooks available (Kobo, 2013, About Us)

• Broad range of content across age ranges kobocafe, 2013, “Kobo’s bet to double down”)

• Partnership with Chapters in Canada and other major retailers worldwide (Koslowski, 2013, para 1)

• Ebooks are available in 190 countries across 68 languages kobocafe, 2013, “Kobo’s bet to double down”)

KOBO – SWOT - WEAKNESSESS

• Limited functionality versus tablets • Rated lower than competitive eReaders by Consumer

Reports (Consumer Reports, 2012, p 2) • Low single digit market share in the U.S. market

(Greenfield, 2013, p 1) • 20% share of the global ebook market (Hoffelder, 2013,

para 2) • EReaders are only available in a dozen countries

(Greenfield, 2013, p 3)

KOBO – SWOT - OPPORTUNITIES

• Growth in self-published books (Campbell, 2013, para 2)

• Baby boomers/seniors have more leisure time (Statistics Canada, 2009, para. 20)

• Large global market for ebooks (Bensinger, 2013, para. 3)

• Aging population (Statistics Canada, 2012) • Advertising space is being sold on competitive

eReaders (Warc, 2011, para 1)

KOBO – SWOT - THREATS

• 53% of consumers intend to buy a Kindle (Ipsos, 2012, para 9)

• People are spending more time on the internet (CBC News, 2012, para. 2)

• Tablet computers use colour, graphics, apps and touch technology (Bensinger, 2013, para .10)

• Pirating of ebooks (Pogue, 2013, para. 17) • Significant competitive pressure from Apple, Amazon

and Sony (Euromonitor, 2012, p 2) • Competitors spend large amounts on media (Del Rey,

2013, para 5)

REFERENCES Amazon. (2013). Kindle E-readers. Retrieved from

http://www.amazon.ca/dp/B007HCCOD0/ref=sa_menu_kdpszn

Bensinger G. (2013, Jan 4). The E-Reader Revolution: Over Just as It Has Begun? Wall Street Journal. Retrieved from http://online.wsj.com/article/SB1000142412788732387420457821983416057301 0.html#printMode

Bhatt D. (2013). KOBO. Retrieved from: http://dhavalbhatt.com/KOBO

Best Buy. (2013). eBook Readers. Retrieved from http://www.bestbuy.ca/en-CA/category/ebook- readers/28383.aspx?path=3577dc31bbe26f7fd8cf23435ae3ca05en01

CBC News. (2012, Mar 2). Canadians lead in time spent online, says report. Retrieved from http://www.cbc.ca/news/technology/story/2012/03/02/canadians-more-time-online.html

Euromonitor International. (2012, Sept 10). Kobo Inc in Consumer Electronics (Canada). Retrieved from http://www.portal.euromonitor.com.library.sheridanc.on.ca/Portal/Pages/Search/S earchResultsList.aspx

Euromonitor International (2013, Nov). Portable players in Canada. Retrieved from http://www.portal.euromonitor.com.library.sheridanc.on.ca/Portal/Pages/Search/ SearchResultsList.aspx

Greenfield J. (2013, April 5). Kobo CEO Mike Serbinis: Doubling down on eReaders and international expansion. Digital Book World. Retrieved from http://www.digitalbookworld.com/2013/kobo- ceo-mike-serbinis-doubling-down-on-e-readers-and-international-expansion/

REFERENCES Hoffelder N. (2013, Jan 16). Kobo boasts that they have 20% of world eReader market, forgets to mention

ebook market share. The Digital Reader. Retrieved from http://www.the-digital- reader.com/2013/01/16/kobo-boasts-that-they-have-20-of-world-ereader-market-forgets-to- mention-ebook-market-share/

Ipsos Reid (2012). Latest Wave of Ipsos Study Reveals Mobile Device Brands Canadian Consumers are Considering in 2012. Retrieved from http://www.ipsos-na.com/news- polls/pressrelease.aspx?id=5596

Kobo. (2013). About Us. Retrieved from http://www.kobo.com/aboutus

Kobo. (2013). Ereaders – Technical Specs. Retrieved from: http://www.kobo.com/ereaders

Kobo bucks softening e-reader market, adds 2.5 million customers (2013, May 28). The Globe and Mail. Retrieved from http://www.theglobeandmail.com/technology/business-technology/kobo- bucks-softening-e-reader-market-adds-25-million-customers/article12185743/

Kobocafe. (2013, May 28). Kobo’s bet to double down on passionate booklovers pays off. Retrieved from http://cafe.kobo.com/

Koslowski M. (2012, April 23). Kobo controls 45% of the Canadian eReader Market. Retrieved from www.goodeReader.com

Purewal, S. J. (2013, April). Kobo E-readers: Different sizes, distinctive features. PC World, 31, 46-47. Retrieved from http://search.proquest.com/docview/1324620284?accountid=3455

Statistics Canada. (2009). Online activities of Canadian boomers and seniors. Retrieved from http://www.statcan.gc.ca/pub/11-008-x/2009002/article/10910-eng.htm

Warc (2011). Brands look to the Kindle. Retrieved from http://www.warc.com.library.sheridanc.on.ca/