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Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
Ooligan special markets presentation
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Ooligan special markets presentation

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  • 1. Bookselling Possibilities:Reaching Special Markets PORTLAND STATE UNIVERSITY OOLIGAN PRESS MARCH 1, 2012
  • 2. Market Overview—  Many publishers and their sales managers use categories such as the following to evaluate their sales and marketing: ¡  Bookstores ¡  Other large book buying accounts – e.g. Amazon, Costco ¡  Library / school ¡  Catch-all “Special sales”—  “Customer class” is the most common metadata tag
  • 3. Categories generally considered “Trade Bookselling”—  Bookstores—  Other large book buying accounts – e.g. Amazon, Costco—  Library / school—  Generally purchased returnable ¡  Libraries and schools purchase non-returnable when purchasing directly; but more often they buy through wholesalers, who are returnable accounts
  • 4. Generally considered “Special Sales”—  Can be anything and everything else—  Generally purchased non-returnable (but at higher discounts)Without breaking it down further, thiscategory is hard to target, difficult to marketto, and tough to build revenue projectionsfrom.
  • 5. Where potential book buyers shop…—  Look at the entire range— ¡  Why they shop where they shop ¡  What they expect to find there ¡  What would drive them to purchase your book there—  Publishers should review their sales strategies— ¡  Do they match where their customers will be shopping? ¡  Are there markets that will repay more effort?—  Smaller publishers who work within a niche can do much better in special markets than large general houses, when they understand their customer focus
  • 6. Where Books Sell Percentofsales 2%$ 3%$ 12%$ Bookstores$ 7%$ 48%$ General$retail$$5%$ Specialty$retail$ Gi:$retail$ 23%$ Ins<tu<onal$ School$&$Library$ Direct$to$consumer$
  • 7. A Note About Statistics—  Sources for this breakdown: Publishing for Profit, Thomas Woll; reports of the Book Industry Study Group; the PubWest Book Statistics (Huenefeld) reports; and my own twenty years of bookselling experience.—  This generalized statistical breakdown of bookselling is of the industry as a whole, not any single individual publisher; also, this is in flux, changing over time.—  This breakdown is of physical books and does not include digital editions
  • 8. “Less than half of all books are sold in bookstores” Percent$of$sales$ 2%$ 3%$ 12%$ Bookstores$ 7%$ 48%$ General$retail$$5%$ Specialty$retail$ Gi4$retail$ 23%$ Ins7tu7onal$ School$&$Library$ Direct$to$consumer$
  • 9. Retail Booksellers—  National chains: Barnes & Noble, Borders (defunct)—  National online booksellers: Amazon, BN.com—  Regional chains: Books-a-Million, Hastings—  Independents: Powell’s, Elliot Bay—  90% or more of sales are coming from books ¡  May also carry magazines, stationery, toys, calendars, not to mention coffee ¡  This segment is in flux from bricks and mortar to online ¡  Although Amazon has no physical store, I place it here because it has similar market forces, supply chain, and competes for its customers with traditional book retailers
  • 10. Bookselling is a Specialty Retailing Category—  In general, every large specialty retail category supports national chains, regional chains, independents, and in some cases, subspecialty retail categories, as well as its own wholesalers and distributors ¡  National chains can be central buying office, or franchises (e.g. Little Professor)
  • 11. Retail Bookselling Subspecialties—  College bookstores (trade book sections)—  Religious booksellers—  Specialty retail bookstores: ¡  Children’s, Mystery ¡  Others subspecialties listed by the ABA: African-American, Art & Architecture, Feminist and LGBT, Travel, Mind/Body/Spirit, Sci-Fi, Science/Tech/Prof, Regional—  Traditional book clubs ¡  Book-of-the-Month, Literary Guild; now almost defunct—  Some mail-order catalogs ¡  (e.g. Edward R. Hamilton Booksellers)
  • 12. Wholesalers (primarily books)—  Wholesalers who supply these retailers ¡  National: Ingram, Baker & Taylor ¡  Regional: Partners West, Books West ¡  Specialty: SPD, Christian Book Distributors
  • 13. “I’ll get it at Costco” – General Retail Percent$of$sales$ 2%$ 3%$ 12%$ Bookstores$ 7%$ 48%$ General$retail$$5%$ Specialty$retail$ Gi9$retail$ 23%$ Ins<tu<onal$ School$&$Library$ Direct$to$consumer$
  • 14. General Retail with Trade Book Sections—  Not solely in the book business, but enough of a selection that they are thought of as a source for books by the general public. Focused on bricks and mortar (although Amazon could be categorized here)—  Warehouse clubs: Costco, Sam’s—  Discount and department stores: Target, Wal-Mart, Fred Meyer—  Grocery & drug stores—  Newsstands, airports, terminals—  Military PX
  • 15. Retailers with book sections—  Same dynamic as any large retail segment: national chains, regional chains, independents, subspecialty retailers, distributors—  National: Costco, Target—  Regional (to some degree): BJ’s, Fred Meyer—  Specialty: newsstands, airports, military. Kmart and Wal-Mart: primarily children’s books. Walgreen’s: romance—  Independent “general retailers” are almost defunct ¡  An example would be a small-town general store
  • 16. Dynamics of General Retail—  These retailers have a book selection extensive enough that the some consumers think of this as a destination store for books, generally, across many categories (or the categories they’re interested in)—  For this reason, these accounts have book buyers (or a designated buyer who works with a book wholesaler) – either way, some expertise at merchandising books—  Thus, not usually categorized as special sales
  • 17. Wholesalers to General Retailers—  National: Levy, Anderson, News Group, BTMS, Hudson Group ¡  Extensive consolidation here over the last two decades—  Regional: American West ¡  Regional can mean book content or market coverage—  Specialty: Military suppliersGeneral retailers often prefer to work with wholesalers; forany business, holding down the number of vendorsgenerally lowers expenses
  • 18. Wholesalers vs. Distributors—  Purchasing decision may be made by wholesaler – distribution outlets, channels, pockets, displays may be controlled by this decision maker—  When the wholesaler controls the decision making for retail placement, it should be considered a distributor—  Buyers working in tandem and in layers, one at the retailer, one at the distributor—  True demand vs. promotional opportunities; push vs. pull
  • 19. Trade Bookselling: 71% of sales Percent$of$sales$ 2%# 3%# 12%# Bookstores$ 7%# 48%$ General$retail$$5%# Specialty#retail# Gi3#retail# 23%$ Ins7tu7onal# School#&#Library# Direct#to#consumer#
  • 20. Special Sales #1: Focused Content Percent#of#sales# 2%$ 3%$ 12%$ Bookstores$ 7%$ 48%$ General$retail$$5%# Specialty#retail# Gi5$retail$ 23%$ Ins7tu7onal$ School$&$Library$ Direct$to$consumer$
  • 21. Retailers with Focused Content—  Specialty retailers who may or may not carry some books, but have a dedicated clientele who expects to find all support for their interest in this venue—  The #1 category most frequently called “Special Sales”—  Sales to this market segment can be kept in-house by specialty publishers even though they work with master distributors (PGW, IPG, NBN, etc.) for their trade distribution—  Retailers may expect higher margins, in line with their other merchandise
  • 22. Examples of retailers with focused content not necessarily books—  Home improvement—  Outdoor recreation—  Body/Mind/Spirit—  Craft and hobby—  Pets; Farm & seed—  Biking, sporting goods—  Teacher supply—  Cooking—  Gardening—  Art materials—  Toys—  Office supply Almost any niche publishing program can find a matching retail channel
  • 23. In specialty retail, books must add to the retail mission True-life examples:—  Home repair: books can sell other, higher-priced merchandise ¡  Home Depot eliminated book sections in Mar. 2012—  Pet care: some book buyers, but few repeat purchases—  Sewing machines: books move some merchandise, but may detract from bigger sales opportunities—  Automotive: repair books would detract from retail focus Tip: look for retailers who offer classes: teachers = authors
  • 24. Wholesalers and Distributors—  Retailers more often buy through wholesalers in this channel ¡  Easiest to have single source for all books—  Purchasing decision may be made by retailer or by the distributor—  These wholesalers may focus on books for this content area, or focus on this content in addition to other merchandise—  Distributor may focus on subspecialty—  Wholesalers who focus on a channel and carry books as a sideline will often demand higher margins—  Major vendors sometimes start carrying books by accident, become wholesalers by default over time
  • 25. Example of retail channel with focused content: Crafts—  National: Michaels, Jo-Ann, Ben Franklin ¡  Chains can be central buying office (Michael’s) or franchises (Ben Franklin)—  Regional: A.C. Moore, Hobby Lobby—  Independents—  Sub-specialty: fabric, yarn, scrapbooking—  Subject-specific mail-order supply catalogs—  Subject-specific websites ¡  May be paired with a retailer or a mail-order catalog, or stand alone—  Subject-specific book clubs (Crafter’s Choice)
  • 26. Wholesalers in Crafts—  Two out of three national retailers purchase through distributors—  Books in different areas in store merchandised by competing wholesalers—  Distributors: BTMS, HDA—  Distributors who focus on craft books, in addition to other book subjects (HDA, Select)—  Wholesalers who focus on a specialty, carrying books in addition to other category merchandise (Checker, Brewer)—  Wholesalers who focus on subspecialty (Crafts Americana, Royal: fabric, yarn)
  • 27. Specialty Retail Selling Dynamics—  May prefer to work with distributors (cost vs. selection)—  May be opportunities to distribute regionally (by topic or author); may be opportunities to test locally first—  Seek out commission reps who carry merchandise into the channel—  Create rack opportunities (where do books find a home within this environment?)—  Understand planograms and change-outs as well as category management—  A competitor may be the category manager (e.g. Leisure Arts in crafts)
  • 28. More Specialty Retail Selling Dynamics—  Look for the same patterns as in bookselling: national chains, large chains, independents—  Home office buying vs. purchases at store level (franchise stores)—  Look for subspecialties, look for independents—  Look for the other retail opportunities within this channel: mail order catalogs, book clubs, specialty websites—  There will almost always be a specialty wholesaler—  There will generally be a specialty trade show for the category
  • 29. Special Sales #2: Gift Retail Percent#of#sales# 2%$ 3%$ 12%$ Bookstores$ 7%# 48%$ General$retail$$5%$ Specialty$retail$ Gi1#retail# 23%$ Ins:tu:onal$ School$&$Library$ Direct$to$consumer$
  • 30. Gift Retail—  Very different dynamics than Specialty Retail, though often the two are conflated in selling, marketing, and budgeting—  Here, books are unexpected surprises, adding to the merchandising mix ¡  This is different than a general retailer such as Target, where a customer goes to shop the book section—  Books as merchandise—  Stand-alone, single title opportunities—  Merchandising can be key: quirky counter displays, ‘store-within-a-store’, etc.
  • 31. Retailers with book opportunities—  Department stores (national, regional, local)—  Gift and card stores (chains – Hallmark, Cracker Barrel -- and independents)—  Housewares and lifestyle stores (Urban Outfitters, Spencer Gifts, Anthropologie) ¡  At some chains, books have become such a successful part of the merchandise mix, that consumers now expect to find them there. Still, not a true selection by subject, just an edited collection—  Apparel—  Discounters (Burlington Coat Factory)
  • 32. Gift sales – dynamics—  Books of general interest reaching the general public—  Impulse buys; humor and quirkiness—  Purchasing decision generally made by retailer, not a distributor ¡  Not enough book buying to warrant using wholesalers—  Buying direct, may ask for higher margins—  Retail strategies include pre-packs, merchandisers—  Testing is a possibility—  Commission groups and gift shows (local)—  Specialty retail and gift retail can use the same non- returnable discount schedule
  • 33. Two Examples—  Pottery Barn ¡  No books at one time ¡  Then, branded books only; proprietary publishing (as all their merchandise is). Pendulum swung to a few books stocked ¡  Enormous opportunity, almost impossible to get into—  Restoration Hardware ¡  Originally had an extensive home décor and repair book section as part of its retail mission ¡  As their customer profile changed, this section was de- emphasized; changed from a specialty retailer into a gift retailer ¡  Throughout the store, books now help tell their retail “story”
  • 34. Special Sales #3: Institutional Sales Percent#of#sales# 2%$ 3%# 12%$ Bookstores$ 7%$ 48%$ General$retail$$5%$ Specialty$retail$ Gi:$retail$ 23%$ Ins0tu0onal# School$&$Library$ Direct$to$consumer$
  • 35. Institutional Sales: opportunities for bulk, non-retailer purchases—  Should be kept separate from school (classroom) sales, as marketing dynamics are very different—  Books for premiums or giveaways ¡  Someone who is not the consumer is making the buying decision—  Author’s own purchases for non-retail situations (training, teaching)—  Corporate training programs—  Corporate, institution, or government gifts—  Other situations where a decision-maker is buying books in bulk for a non-retail use
  • 36. Real-life examples of institutional sales—  Author purchase, giveaway to lecture attendees (biography)—  Corporate new employee orientation classes (business)—  PBS premium with program tie-in (performing arts)—  Office of the Mayor presents for visiting trade delegations (photography)—  Real-estate sales office thank-you baskets to new homeowners (regional interest)—  Holiday gifts for sales force (self-improvement)—  Cruise line “bon voyage” gift in each stateroom (travel)
  • 37. Institutional Sales Strategies—  Brainstorm early as possible in book life-cycle, pre- printing—  Reach out to appropriate corporate, educational, government possibilities—  If possible, offer to customize, personalize, re-bind, excerpt or abbreviate content—  Inquiries on smaller orders, quote a standard discount —  No need for a tiered discount schedule; their quantities won’t be price sensitive—  But for large orders, be flexible, price to make the sale and make a profit
  • 38. Institutional Sales Strategies, continued—  Weigh time spent against potential sale (opportunity cost)—  Will this be repeat business? Generally, not, though the occasional exception can be very profitable—  Even in this area, there are wholesalers (e.g. The Book Company, Delray Beach, FL) commission agents (The Jenkins Group) and trade shows (PPAI)
  • 39. Market Segments and Digital Books—  Book retailers: YES—  General retailers: Not yet—  Specialty retailers: Not yet—  Gift retailers: No ¡  Though, note the Starbucks free download cards for iBooks—  Institutional sales: Generally, no—  School and library: Growing—  Direct to consumer: YES
  • 40. Special Sales 1, 2, 3: a profitable 15% Percent#of#sales# 2%$ 3%# 12%$ Bookstores$ 7%# 48%$ General$retail$$5%# Specialty#retail# Gi6#retail# 23%$ Ins8tu8onal# School$&$Library$ Direct$to$consumer$

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