mminor_613_w9 FINAL

Brand Audit
M. Eric Minor
IMC 613 – Final Project
Oct. 22, 2012

Minor – KINDLE FIRE HD BRAND AUDIT 2

EXECUTIVE SUMMARY
The Amazon Kindle Fire HD has already established itself as a buzz-worthy lower-cost
alternative to the market-leading Apple iPad in the increasingly competitive tablet computer
segment. A product of the powerful Amazon.com brand, the Kindle line of e-readers and tablets
enjoys a link with a trusted and successful global brand and a vast content library. While
Amazon CEO Jeff Bezos has made a point to link the new Kindle products to the customer-
centric "Amazon Doctrine," there are opportunities to leverage Amazon's brand equity to boost
the Kindle's profile and sales. Further, positioning the Kindle Fire as an affordable alternative to
rather than a direct competitor to the market leader will reinforce sources of positive brand
equity within the minds of consumers who desire an affordable, yet high-performing device
without "breaking the bank"--an investment that allows consumers to afford to "have their cake
(an affordable device) and eat it (watch content, read content, listen to content, interact with
content) too."

BRAND INVENTORY
While it launched in 1995 as an online bookseller, today Amazon.com is the world’s
largest online retailer (“Amazon.com, Inc.”, 2012). In 2007, the company released its first
proprietary e-reader, the Kindle. Now in its fifth generation, Amazon’s Kindle brand has
extended into the lucrative and competitive tablet computer product segment and is emerging as
a competitor to the Apple iPad, the global market leader in tablet sales. While Amazon is itself
the leader in e-commerce, the Kindle sub-brand is a challenger in the competitive tablet
computer product segment. In a September 2012 news conference, Amazon founder Jeff Bezos
unveiled the current generation Kindle Fire HD, saying:
“We have not built the best tablet at a certain price;
we've built the best tablet at any price” (Stern, 2012)
The aim of this inventory is to assess the current
health of the Kindle Fire brand, especially as it relates to
key competitors in the tablet computer category. While
the primary goal is to describe the current state of the
brand for Kindle Fire HD and its closest competitors, this inventory also provides some insight
into how to better manage its brand equity.
Name:
Amazon.com founder Jeff Bezos named his company after the world's most voluminous
river as a symbol of the company's aim to have the largest volume of books available for sale
(Byers, 2006). In 2010, the Amazon.com brand name was listed as the “most trusted” brand in
the United States by market research firm Millward Brown based upon two questions to
Kindle Fire HD

consumers: “how trustworthy is this
brand?” and “would you recommend
this brand?” (Walsh, 2010).
Amazon.com was the 3rd most-trusted
global brand, behind Pampers and Visa.
Although this inventory is examining
the Kindle Fire sub-brand, it’s important
to understand that the Amazon.com name is a major source of positive equity for the Kindle
brand.
Amazon introduced its first generation Kindle e-reader in 2007. The Kindle name was
chosen by the Cronan Branding Agency with a mandate from Bezos to find a name that was
memorable and meaningful, but not ‘techie’ or trite:
Kindle means to set alight or start to burn, to arouse or be aroused, to make or become
bright. The word's roots are from the Old Norse word kyndill, meaning Candle. "I
verified that it had deep roots in literature," adds (Cronan partner Karin) Hibma. "From
Voltaire: 'The instruction we find in books is like fire. We fetch it from our
neighbours, kindle it at home, communicate it to others and it becomes the property
of all.'" (Friedman, 2008).
As Amazon expanded its Kindle hardware from simple e-reader to full-fledged tablet in 2011, it
extended the metaphor by naming its new device “Fire,” a name chosen because it is “simple and
familiar, and has lots of metaphorical significance and emotional oomph” (Johnson, 2011).
First Kindle Fire TV Spot featured a quote from Voltaire

Logos:
The Amazon.com logo (which appears on Kindle branded products) consists of a
lowercase logotype white with a gold curved line running from the letter “a” to the letter “z.”
The curved line ends with an arrow point, signifying that “Amazon carries everything from A to
Z.” The curved line also resembles a smile.
The Amazon Kindle logo is similarly in lowercase type, again featuring the gold
arrow/smile, but replaces the .com domain name with “kindle” appearing in the same warm gold
hue and a slightly different typeface. The warm color aligns with the warm fire imagery of the
name. In black and white, the arrow/smile is presented in black.
The Kindle Fire logo departs from the others by dropping the “Amazon,” promoting the
same “kindle” logotype to the first position and adding the word “fire” in a gradual shift from red
to orange, evoking the color of fire. In black and white, the word “kindle” is presented in

grayscale. Amazon.com’s online “media room does not depict the Kindle Fire logo in any other
style.
Amazon and Kindle Logos on device's reverse side
On the device itself, the amazon “smile” logo appears on the back lower center in a
lighter grey than the overall slate color of the casing. The Kindle Fire HD logo appears toward
the right on a dark black strip between the speakers, also on the device’s back. Both logos blend
into the device’s case and are difficult to see. If the device were installed in a protective case,

both logos would be obscured. Other than on loading screens, there are no logos on the front side
of the device.
Website:
The URL “amazon.com” has been in use since the company went on line in 1995 and
carries with it the aforementioned level of trust the Amazon brand name enjoys. Currently, the
URL leads directly to a welcome page which immediately introduces “The All-New Kindle
Family” above any of its numerous other product offerings, even those suggested to the visitor
based upon his or her previous purchases.
The Amazon.com 'welcome' page introduces ‘The All-New Kindle Family.’
Clicking on the images of the three current-generation Kindle devices leads the visitor to specific
pages that explain more about each device’s specifications, price, reviews and a button allowing

the visitor to initiate a Kindle purchase. As price is a major part of the Kindle device’s unique
selling proposition, price is featured prominently (on the welcome screen in an inviting blue; on
the device-specific pages in an attetnion-grabbing red). Because the Amazon.com website is the
primary distribution channel for the device, the URL is a highly important brand element.
Product availability:
In the Spring of 2012, Target stopped selling Kindle products in its brick-and-mortar
stores. Walmart followed suit in the Fall of 2012, citing a merchandizing strategy aimed at
catching Amazon in online sales (Wohl, 2012). Retail partners who sell Kindles in brick-and-
mortar stores are not allowed to sell them on their web sites. Amazon has yet to confirm plans to
open its own brick-and-mortar outlets, however, there are reports it plans to open a test boutique
in Seattle, Washington selling high-end items, such as tablets (Halzack, 2012).
Kindle devices and Kindle accessories can be found in select retail stores. Many of these
retailers offer working demonstrations of Kindle devices that allow prospective buyers to try out
Kindle by reading book samples and exploring the Kindle Store. According to Amazon.com,
Kindle products are available through the following global retail partners:
American retailers:
 Bartell Drugs
 Best Buy
 BJ's Wholesale Club
 Exchange (authorized patrons only)
 Follett Stores
 Fred Meyer

 J&R (New York City only)
 Kmart
 Navy Exchange
 Office Depot
 Office Max
 Radio Shack
 Sears
 Staples
 Toys R Us
Australia and New Zealand retailers:
 Big W
 Dick Smith
 Progressive Supermarkets
 Woolworths
Canadian retailers:
 Shopper's Drug Mart
 The Source
 Staples CA
South African retailers:
 Incredible Connection

Placement/Distribution:
Within its retail partners,
Kindle products primarily occupy
small retail spaces in electronics
departments. In many of these stores,
Kindle products are displayed
alongside other e-readers and Kindle accessories (such as chargers, cases and Amazon.com gift
cards). Display models are available so that consumers may familiarize themselves with the
device and compare with other brands before purchasing. Prices are listed on display rods or on
shelf tags below the product. In the Best Buy example shown here, prices are on yellow tag-
shaped Best Buy branded price labels and only one Kindle e-reader is given facing space. A
survey of Radio Shack, Kmart and Target stores in the Steubenville, Ohio/Wheeling, WV metro
area found only one retailer, the Steubenville Office Max, displaying current-generation Kindle
Fire HD devices for sale. Only one display unit was visible, with the remaining stock kept in a
locked cabinet beneath the shelf. There was minimal branded signage at the Office Max display.
Kmart and Radio Shack stores in the Steubenville/Weirton metro area had no Kindle products on
display or in stock.
However, based on product listings on the website for its retail partners (promoting in-
store sales only) the $199.00 price appears to be consistent. (Best Buy lists the Kindle Fire HD
at $199.99). Amazon does not make sales data publicly available, so the ratio of Kindle Fire
units sold through the Amazon.com website to its brick-and-mortar retail partners is unclear.

Taglines/Slogans:
 The Best Tablet at Any Price. – used by Jeff
Bezos at the Kindle Fire HD rollout Sept. 6,
2012.
 Hey normal, take that. – tagline in Kindle
Fire HD TV commercial debuting Sept. 12, 2012.
 We’re the ones with the smile on the box. – copy line from the same commercial.
 Meet the Kindle family. – from the Amazon.com website.
 All the content. Ultra-fast web browsing. – first generation Kindle Fire’s slogan.
Mission statement(s):
Amazon.com’s mission/vision statement is listed on its website as: “Our vision is to be
earth's most customer centric company; to build a place where people can come to find and
discover anything they might want to buy online.” During the September 12, 2012 launch of the
new line of Kindle products, Bezos also emphasized “The Amazon Doctrine.”
 “Above all else, align with customers.”
 “Win when they win. Win only when they win.”
 “We want to make money when people use our devices, not when they buy our devices.”
Product detail:
While the Kindle line offers several dedicated e-reader devices (Kindle Keyboard, Kindle
Paperwhite), these devices are e-readers and not full-fledged tablets.
Bezos at Kindle Fire Launch, Sept. 2012

 Kindle - $69.00
 Kindle Paperwhite - $119.00
 Kindle Keyboard 3G - $139.00
 Kindle Paperwhite 3G - $179.00
 Kindle Fire - $159.00
 Kindle Fire HD - $199.00
 Kindle Fire HD 8.9" - 299.00
 Kindle Fire HD 8.9" 4G - $499.
For the purposes of this brand audit, we will focus on the Kindle Fire brand (specifically
the Kindle Fire HD 8.9” 4G LTE Wireless model, which Amazon has positioned against the iPad
at launch and throughout its marketing materials.
The current-generation Kindle Fire HD boasts:
 Stunning 8.9" HD display, exclusive Dolby audio, fastest Wi-Fi, plus ultra-fast 4G LTE
wireless
 1920x1200 HD display with polarizing filter and anti-glare technology for rich color and
deep contrast from any viewing angle
 Exclusive Dolby audio and dual stereo speakers for crisp, booming sound without
distortion
 High performance 1.5Ghz dual-core processor with Imagination PowerVR 3D graphics
core for fast and fluid performance
 Dual-band, dual-antenna Wi-Fi for 40% faster downloads and streaming (compared to
iPad 3)
The Kindle Fire HD 8.9" is positioned against Apple's iPad

 Over 22 million movies, TV shows, songs, magazines, books, audiobooks, and popular
apps and games such as Facebook, Netflix, Twitter, HBO GO, Pandora, and Angry Birds
Space
 Integrated support for Facebook, Twitter, Gmail, Hotmail, Yahoo! and more, as well as
Exchange calendar, contacts, and email
 Free Skype video calls with front-facing HD camera
 Free unlimited cloud storage for all your Amazon content
 Includes special offers and sponsored screensavers.
 Kindle FreeTime - a personalized tablet experience just for kids. Set daily screen limits,
and give access to appropriate content for each child. Free on every Kindle Fire HD.
 Prime Instant Video - unlimited, instant streaming of thousands of popular movies and
TV shows (for Amazon Prime* service subscribers).
 Kindle Owners' Lending Library - Kindle owners can choose from more than 180,000
books to borrow for free with no due dates, including over 100 current and former New
York Times best sellers and all 7 Harry Potter books. (for Amazon Prime* service
subscribers).
 *Amazon Prime is a $79/year optional subscription service which entitles members to free two-
day shipping on Amazon products, unlimited instant streaming of thousands of movies and TV
shows through and a Kindle e-book to borrow for free each month through the Kindle Owners’
Lending Library’.




 Pricing Summary:
 The price of Kindle tablets and e-readers is the feature that has garnered the most earned
media attention for this product line. A basic Kindle Fire’s bill of materials is an estimated $209,
but Amazon sells the product for $199 (Bajarin, 2012). The strategy Amazon is employing is to
encourage consumers to spend less on the device and spend more on filling it with Amazon-
distributed content. This is in line with the “use” over “buy” profit model from Bezos’ “Amazon
Doctrine.” In its most direct challenge to the Apple iPad, the Kindle web site compares the
Kindle Fire HD 8.9” 4G LTE side-by side with the iPad 3 in terms of “first-year cost” to the
consumer. Of particular note is the comparison of the cost of the data plan and cloud storage
(using the company’s servers to store your purchased content); “hidden costs” not included in the
price of any tablet device. Amazon mandates that its retail partners adopt this pricing plan.
 The market-leading Apple iPad 32GB 4G model is $729. A comparable Samsung
Galaxy Note 10.1 retails for $550. A comparable Kindle Fire HD retails for $499.

Packaging:
Whether it is shipped from Amazon.com or purchased at a retail partner, the Kindle Fire
HD is packaged in a slim matte-black box with a beveled top edge. The Amazon smile logo is
Savings is an important selling proposition

Social media:
As of October 1, 2012, Kindle Fire HD has a Twitter account which has attracted nearly
2,700 followers. However, the account appears to be dormant. No tweets have been posted and
no other Twitter users have been followed. Amazon.com and the Kindle overall brand have a
much more robust Twitter presence.
Kindle Fire HD Social Media: Facebook and Twitter Pages
The Kindle Fire HD also has an official “fan” page on Facebook. Its design and layout
are very similar to the Amazon.com welcome page and feature similar “Kindle Fire Family”
copy. It contains links to videos from the Kindle fire press conference and clips featuring the
current television ad campaign. This Facebook page currently has more than 929,000 “likes.”
The official Kindle Fire HD YouTube page includes clips of Jeff Bezos’ rollout news
conference, product demonstrations and television ads from Amazon’s current TV campaign.
Traditional media:
A television campaign featuring 30-second ads focusing on the Kindle Fire HD is the
most visible traditional media Amazon currently employs. The Kindle Fire HD ad is consistent
with Amazon’s current overall TV campaign which touts how the company has created a novel
business model which is now considered “normal.”

In the TV ad, various scenes of happy Amazon customers of all ages and ethnicities
happily open a branded Amazon shipping carton and experiment with the new Kindle Fire HD.
Upbeat music plays as a voiceover artist reads the following copy in a friendly voice:
“We're the people with the smile on the box. We're the re-inventors of normal. When we
bring you a new Kindle Fire, you should know that normal is going to change... again. With a
stunning HD screen, HD camera and dual-speaker Dolby Sound. And 20 million movies, TV
shows, songs, games, books and more. Hey normal, take that. The all-new Kindle Fire HD.”
"Hey normal, take that" Kindle Fire HD TV ad

Competitive snapshot:
Clockwise from upper left: Apple iPad3, Samsung Galaxy Note 10.1, Kindle Fire HD
Sales: While the Kindle’s U.S sales appear to be growing, the brand suffered a 13% loss of
global market share from Q1 – Q2 of 2012, putting the Amazon tablet 5 percent behind second-
place Samsung and 60 percent behind world-leader Apple.

Apple’s stranglehold on the U.S. tablet market may be loosening. According to a recent Frank N.
Magid survey of 4,734 cell phone and smart phone users, 50% of people with a tablet have an
iPad.
That doesn't sound so bad until you consider that previously that number had been more
like 72%. The slack was taken up by Amazon's Kindle Fire, which has jumped from zero
to a 22% share of the market since it launched in fall 2011 (Netburn, 2012).
Satisfaction: The inaugural JD Power and Associates Tablet Satisfaction Study measured
satisfaction across five key factors and ranked them in order of importance.
 Performance (26%)
 Ease of operation (22%)
 Styling and design (19%)
 Features (17%)
 Price (16%)
According to the Power survey, “Apple ranks highest, achieving a score of 848 (on a 1,000-point
scale) and performs well in four factors: performance; ease of operation; styling and design; and
features. Amazon (841) closely follows Apple in the rankings and performs particularly well in
the price factor” (2012).
Competitors’ Brand Positioning (gathered from product web sites):
Apple iPad 3: “It’s brilliant. In every sense of the word.”
Pick up the new iPad and suddenly, it’s clear. You’re actually touching your photos,
reading a book, playing the piano. Nothing comes between you and what you love. To
make that hands-on experience even better, we made the fundamental elements of iPad
better — the display, the camera, the wireless connection. All of which makes the new,
third-generation iPad capable of so much more than you ever imagined.

Samsung Galaxy Note 10.1: “Note the new way.”
Push the boundaries on what you view—and now what you can create—on the new
Samsung Galaxy Note™ 10.1. With the innovative S Pen™ you can express creative
ideas and increase your productivity like never before. Edit photos, create detailed
illustrations or send handwritten notes to family and friends. With the Multiscreen
function, watch videos or read articles on one screen while taking notes on the other—all
on your Galaxy™ 10.1 powered by Android™ 4.0 Ice Cream Sandwich.
To simplify: Apple has positioned itself as a “do-everything” tablet emphasizing the
direct contact a user makes with his or her fingers on the screen. Samsung plays up multitasking
and a unique input device (the S Pen stylus). As explored previously, Amazon positions itself
based on low price and access to its substantial content library.
Brand Inventory summary
Positives
 The product’s brand elements link directly to the trusted Amazon name.
 Pricing clearly differentiates this tablet as an iPad alternative.
 Consumer-centric mission and vision statements
 Massive content offerings
 Amazon’s brand equity transfers easily to this product
Challenges/Opportunities
 Apple has a massive head start in global tablet sales.
 Apple has mini-stores and displays in many “big-box retailers” as well as a strong
online distribution network.

 Amazon lacks a presence through major brick-and-mortar retail channels.
 Conflicting messages: Amazon’s “Best tablet at any price” message is
inconsistent with “content over hardware” message.
 Naming conventions is complicated “Amazon Kindle Fire HD 4G LTE” is a
mouthful.
 There might be too many taglines and mission statements that potentially conflict
or hold no meaning in terms of defining the brand’s strengths.
 Social media presence, particularly on Twitter could be improved
This examination of the Kindle Fire HD’s positioning in the tablet computer marketplace
shows that while the Kindle Fire trails the Apple iPad in global sales, it can position itself as an
affordable alternative to the iPad (if not a direct competitor in terms of sales). Kindle’s challenge
is to distinguish itself from the myriad other budget tablets on the market and to convince
consumers that buying a Kindle will allow them to spend more of their personal entertainment
budget on content rather than on hardware.

BRAND EXPLORATORY
For the purposes of this brand exploratory, we will look for opportunities to enhance the
Kindle Fire brand image and increase its level of brand awareness among current and potential
tablet buyers and users. Research of tablet consumer’s preferences, observations and
expectations is a relatively new field of audience research. We will rely primarily on two sources
of data:
 A survey of student computer users in IMC 613 – Brand Equity Management.
 The inaugural JD Power and Associates 2012 Tablet Satisfaction Survey. The 2012 U.S.
Tablet Satisfaction Study, which is based on experiences reported by 1,985 tablet owners,
was fielded in July 2012.
We will supplement this exploratory with reviews conducted by influence leaders and posted on
technical blogs and by actual tablet users as posted online.
Student survey:
The four-question survey of nine students aimed to yield a general idea of why people
buy tablets and how they use them. Further, it sought to gage the importance of price (the Kindle
Fire’s unique selling proposition). Since the Kindle Fire HD is primarily being marketed as a
media consumption device, the survey also sought to gage consumer attitudes toward using a
tablet for reading, viewing movies or playing games as opposed to other, more traditional
methods (printed books, televisions, gaming consoles). A final open-ended question asked
survey participants to imagine a hypothetical person who “needs” a tablet device to gauge
consumer attitudes to whether such a device is an essential purchase (as opposed to a mere
gadget) and to generate a rough demographic and psychographic sketch of their perception of a
tablet user. Participants were not asked to rank or prioritize (although some did) the features that

were most important to them in a tablet. Some participants voluntarily mentioned specific brands
they either owned or aspired to own. These brand mentions were also noted.
Question 1: What was (or would be) your reason(s) for purchasing a tablet device?
In total, the nine respondents gave 40 varied reasons for buying a tablet device which
were grouped into 5 categories. Media consumption (reading books, watching streaming video,
playing games) was the leading reason (14 out of 40 responses dealt with media consumption).
Web browsing, social media and email placed second (10 out of 40 responses). Productivity
(usefulness for work or school) ranked third (9 out of 40 responses). General portable computing
attributes (such as flexibility, portability, screen size and fast boot-up time) accounted for 16% of
responses. One respondent simply stated that he wanted a tablet because he wanted an additional
device.
Media
Consumption-
35%
34%
Web
browsing/Social/E
mail-25%
25%
Productivity
(work or
school) 23%
23%
Portable
Computing-
general-16%
16%
Wanted add'l
device-2.5%
2%
Reasonsfor buying a tablet

Of the media consumption patterns examined, reading electronic books was the most frequently
given response (7 out of 14), which bodes well for the Amazon Kindle Fire in which there’s a
great deal of existing brand equity linked to both printed and electronic books.
Question 2: What functions would you need your tablet to provide that your phone,
computer or television doesn't provide?
This question was aimed at determining reasons for using a tablet for media consumption
as opposed to a smaller mobile phone or a larger home computer or television set.
20 distinct responses were given by eight of the respondents (one respondent did not
answer the question), which were grouped into three categories. Screen size and visibility was
the primary attribute identified, with 11 mentions out of 20. Portability was second with 5 out of
20 mentions. Functionality (including the ability to display photos, do simple word processing
and display a variety of content) was third with four out of 20 mentions.
Screen size
55%Portability
25%
Functionality
20%
Choosing tablets over other media devices

Question 3: Would low price alone be enough to entice you to purchase a tablet (or
perhaps buy one as a gift for a non-tablet user)?
Eight of nine students surveyed responded to this question. Based upon the survey
population's current brand awareness, patterns emerged in their responses. Five out of eight
responses indicated that price alone was an enticing unique selling proposition for tablet
computers. Two of those five respondents indicated they had specifically purchased a Kindle
Fire as a gift. Three respondents indicated that paying a higher price was justifiable as an
assurance of quality or compatibility with other hardware present in the respondent’s household.
This seemed to indicate an existing Apple brand loyalty in this respondent. Comparisons to the
market-leading Apple iPad arose in three out of the eight responses, although one of those
mentions suggested that the higher price of the Apple iPad made a lower-cost tablet more
attractive.
Student survey responses:
 “I think the compatibility with an Apple Household is what makes the high cost of an
iPad acceptable. Otherwise, I think $200 is appropriate without ongoing monthly costs,
but a pay to play method for data, downloads, or features.”
 “Yes. The Kindle Fire pricing is so great that I am considering buying one and giving my
nook color to my mom.”
 “I actually did that! Last Christmas I purchase a Kindle Fire for my cousin and one for
my Dad!”

 “Price was the reason for my first one; I received an earlier keyboard Kindle as a gift a
few years ago. The iPad is just too expensive for me since I have several laptops and a
Kindle.”
 “As longs as it fits within my set of needs I pick the lowest price.”
 “No, price (unless it was hugely outrageous) is not something that bothers me. I would
rather invest a little bit more in something I trusted than go for the cheap product.”
 “Yes it would.”
 “Yes, but only if I thought the reviews were comparable to the iPad. No matter what you
pay, if it's a piece of junk, you've wasted money.”
Analysis of these responses would seem to suggest that while price is an attractive
feature, Kindle Fire must position itself as a quality device for the price.
Question 4: Imagine a person in your life who uses or who might use a tablet.
Hypothetically: who do you think "needs" a tablet device?
This question was intentionally ambiguous, designed to evoke a wider variety of tablet
consumption patterns and to suggest a demographic for new tablet users. Few discernable
patterns emerged, but the anecdotal information yielded could provide guidance in crafting a
marketing message aimed at people who may purchase a tablet as a gift for someone who does
not currently own a tablet device.
Student survey responses:
 “we don't need tablets, but those who want convenience and connectivity on an
alternative screen adapt more quickly to using it daily”

 “I think that everyone has a use for a tablet, but not sure if everyone ‘needs’ a tablet. I do
like the idea of a smaller tablet that is comfortable for reading but has more power than
the (Barnes & Noble) nook for going online, social media use, etc.”
 “Anyone on the go. Parents. Professionals who like a screen larger than a cell phone.”
 “Voracious readers who never want to be caught without a book can have hundreds with
them or download them as needed on a wireless or 3G-enabled tablet. Older people
whose eyesight is getting bad should get a more accessible tablet.”
 “A busy professional who attends a lot of meetings and doesn't want to lug a laptop; a
student who takes a lot of notes in class and who has a lot of reading to do; a commuter
who reads or does work on the train; a busy parent who sits through swim classes and
gymnastics lessons regularly. In other words, I need one of these devices in the worst
way!”
 “My mother. To read books digitally, but she is scared of electronics and technology in
general.”
 “Someone on the go, someone who likes to technology, a multitasker”
 “I don't think anyone "needs" a tablet. They are the definition of a luxury item.”
 “I think my parents (in their 60s) could use a tablet. They don't know they need one, but
if they had one, they'd never put it down.”
Additional Information-Brand Mentions:
While it was not an intentionally-designed facet of the survey instrument, it’s worth
noting that several specific brands names were mentioned organically, without the respondents
being prodded to specifically mention them. While the sample size is likely too small to provide
actionable information, it does provide a useful snapshot of which brands emerged “in

conversation.”
Two of the nine students surveyed made no reference to a specific brand. The remaining
seven students made multiple brand mentions in their essay-style responses to the four questions
asked, including several references indicating that respondents aspired to own an Apple iPad, but
were deterred by its price (Apple “aspirationals”).
Of the 23 brand mentions counted in the survey results there were:
 7 mentions of owning an Apple product
 7 mentions of wanting an Apple product
 5 mentions of owning an Amazon Kindle product
 2 mentions of wanting an Amazon Kindle product
 2 mentions of owning a Barnes and Noble Nook e-reader
Of further note, all seven mentions of “wanting” an Apple product listed price as the
deterring factor for owning an Apple product. Two mentions of purchasing an Amazon Kindle
were purchases in which the device was given as a gift. One mention of the Amazon Kindle was
Owns Apple
30%
Wants Apple
30%
Owns Kindle
22%
Wants Kindle
9%
Owns
Nook
9%
Device brand "mentions"

a device that the respondent received as a gift. These observations may be useful in positioning
the Kindle Fire HD as an affordable alternative to the iPad for use either by the purchaser or
given as a gift.
Word cloud:
As a final exercise for gauging the most frequently mentioned words in the student
survey, we have generated a “word cloud” through the website Wordle.com. By entering text
into the web-based tool, an image is generated in which greater prominence is given to words
that appear more frequently in the text. As expected, the word cloud showed the market-leading
iPad as a dominant word, with the challenger brand Kindle appearing slightly smaller. The word
cloud generated from student responses gathered through this survey appears on the following
page.

"Word Cloud" generated from unedited student survey responses

JD Power and Associates 2012 Tablet Satisfaction Survey:
The previously explored student survey uses too small of a sample size to provide
actionable information. Fortunately, JD Power and Associates released its inaugural Tablet
Satisfaction Study (Sept. 13, 2012) which is rich with qualitative data about the way people
interact with and what they want from their tablets.
Some highlights:
 Tablet owners spend 7.5 hours per week browsing the Internet, watching videos, listening
to music and reading books on their device, compared with spending 9.6 hours per week
on a personal computer for the same activities.
 Overall satisfaction among owners who view three or more hours of video per week on
their tablet is higher than among those who use personal computers.
 Those who spend three or more hours viewing video content are more likely to purchase
another tablet from their current manufacturer than are those who do not watch as much
video content (90% vs. 81% respectively). (J.D. Power and Associates, 2012).
These numbers show that a pleasant media consumption experience (especially among users
settling in for a few hours) is a major factor in tablet user satisfaction and repeat purchases.
According to Dr. Uma S. Jha, senior director of mobile devices at J.D. Power and Associates,
“Tablets are a force in the marketplace that offer a great alternative to laptops and netbooks”
(Power, 2012).
The Power Tablet Satisfaction Study measured satisfaction across five key factors and
ranked them in order of importance.
 Performance (26%)
 Ease of operation (22%)

 Styling and design (19%)
 Features (17%)
 Price (16%)
“Apple ranks highest, achieving a score of 848 (on a 1,000-point scale) and performs well in
four factors: performance; ease of operation; styling and design; and features. Amazon (841)
closely follows Apple in the rankings and performs particularly well in the price factor” (Power,
2012). This is big news for Amazon. Price is the unique selling proposition for the Kindle, as we
shall explore later. Offering an attractive price while trailing the global market leader in overall
satisfaction by just 7 points can be a major source of positive brand equity for the Kindle.
Some other valuable data available in the Power survey:
 25% of tablet owners indicate they use their tablet for business purposes.
 37% of tablet owners say they are likely to buy a new tablet within the next 12 months.
 Among tablet owners who are highly satisfied (those rating their device 10 on a 10-point
scale), 90 percent say they are likely to purchase additional consumer electronic devices
from the same manufacturer.
 75% of tablet owners indicate they were the sole decision-maker in purchasing their
device.
 61% of owners share their device with at least one other person.
Brand exploratory summary:
Can the new Kindle Fire HD topple Apple in the tablet game? With Apple’s global
market share maintaining a double-digit lead that is projected to grow, it seems unlikely to
happen within the next two years. However, that does not mean that Amazon cannot, as Smith

(2012) suggested “truly compete.” By performing a thorough and effective brand audit, we can
better evaluate whether Amazon’s decision to position the Kindle Fire HD as a competitor to the
Apple iPad is a source of positive brand equity and whether it can help continue to grow the
brand in a competitive marketplace. Bovitz research manager Randy Hellman told Wired
magazine “the Amazon Kindle Fire HD, in the short term, eliminates all competition outside of
Apple,” “Amazon is trying to position it as an iPad equivalent for a better value” (Bonnington,
2012).

RECOMMENDATIONS
While some of the statements made by Amazon boss Jeff Bezos at the Kindle Fire HD’s
rollout in September appear to align with Kindle’s position, other statements are cause for
concern because they appear to be inconsistent with each other and with the overall brand
promise.
For example, Bezos’s declaration that "We want to make money when people use our
devices, not when they buy our devices” seems aligned with the aforementioned “Amazon
Doctrine.” Bill Doerr of the brand auditing firm Sellmore Marketing wrote on his blog about
alignment, positioning and targeting that:
“Kindle is playing on its strengths, not competing on its weaknesses. The tablet computer
market is crowded. Over-crowded. So another tablet is not a smart idea. Neither is
creating an alternative to Apple’s iPad. Kindle Fire makes neither mistake. Kindle Fire is
both unique AND beneficial Kindle’s Fire is different and better than Android tablets that
are both supported — and limited by — Google. Amazon’s Kindle Fire is supported by
Amazon’s version of Android and its own content — a far more extensive resource.
Also, Kindle is not seeking to woo a wide market like Apple is doing with the iPad.
Instead, Amazon is targeting its significant base of loyal Amazon customers who are
seeking a convenient way to access Amazon’s content. The Kindle Fire is also not as
elegant as an iPad. It doesn’t have to be. it just has to provide access to Amazon’s
extensive content. Just as when Coca-Cola gave it’s vending machines away for free —
because Coke™ made its money by refilling their machines. Brilliant! (Oct. 3, 2011).
However, Bezos’s later statement that “we have not built the best tablet at a certain price,
we've built the best tablet at any price” has been interpreted by some as a bold declaration of war
against Apple—with an eye toward knocking Apple from the top of the tablet heap. This is
inconsistent with the goal of customer alignment above all and puts the Kindle Fire in a risky
position: if it fails to be “the best tablet at any price” does the brand lose equity?
"The company has unquestionably succeeded in doing what it set out to; to produce a
brilliant media consumption device that doesn't break the bank. It's a solid tablet perfectly
tailored to its aim of pushing you to buy digital content from Amazon. However, because
of the limitations we've mentioned above, this can't be an iPad Killer. The iPad does

absolutely everything better and so it should at double the price. People who want an iPad
will still buy one. However, due to the sheer number of Kindle Fire devices that will sell,
it is the first device that can truly compete" (Smith 2012).
Can the new Kindle Fire HD topple Apple in the tablet game? With Apple’s global
market share maintaining a double-digit lead that is projected to grow, it seems unlikely to
happen within the next two years. However, that does not mean that Amazon cannot, as Smith
suggested “truly compete.” Bovitz research manager Randy Hellman told Wired magazine “the
Amazon Kindle Fire HD, in the short term, eliminates all competition outside of Apple,”
“Amazon is trying to position it as an iPad equivalent for a better value” (Bonnington, 2012).
However, given the data in the Power study which shows tablet owners are unlikely to
switch brands, perhaps Amazon is losing its focus by challenging Apple directly rather than
looking inwardly at its own existing loyal customer base. According to an August survey by
Forrester, 31 percent of consumers already have their credit card on file with Amazon. Only 18
percent have a card on file with Apple (Epps, 2012). Might Amazon have a better return on its
marketing investment by reaching out to connect to those customers who don’t yet buy online
content?
That payment connection enables Amazon to roll out more subscription services -- which
we see as key to Amazon's future success -- and to offer new products like smartphones,
which 23% of consumers we surveyed said they'd be interested in purchasing if it were
available. What it means: In the post-PC era, services rule, and Amazon is getting quite
good at offering services that consumers want. Like Google before it, Amazon is
methodically disrupting adjacent industries (Epps, 2012).
We suggest refocusing the brand and all messaging around the strategy statement that
Kindle Fire HD is “a brilliant media consumption device that doesn’t break the bank,” rather
than attempting to be “the iPad killer.” To that end, we suggest implementing a new and

consistent tagline “Your heart’s content” appear in all marketing messages. This simple phrase
contains three powerful words within the context of this messaging strategy:
 “Your” -- direct contrast to the Apple lowercase “i” affixed to all of its products. We
believe that using this possessive pronoun in our messaging communicates to the
consumer that Amazon is focused on them.
 “Heart’s” – evokes the existing emotional, trusting and strong bond between the
consumer and Amazon. Evokes the strong emotional connection people make with their
devices and the media contained therein.
 “Content” – double pronunciation gives this word double meaning: “kun-TENT,” in the
context of “your heart’s content,” means happiness and fulfillment. “KAHN-tent” plays
upon what we have established as the Amazon brand’s key strength: a massive existing
library of books, movies, music and applications—the stuff you want to consume on your
Kindle Fire HD.
Four creative “roughs” executing these recommendations in a hypothetical print
campaign appear on the following pages. The logotype’s font and black-and-orange color
scheme should remain consistent through the headlines and tagline. The copy should reinforce
the amount of additional content a consumer could buy with the money saved by purchasing a
Kindle Fire HD.
We further suggest a re-evaluation of the benefit of retail partners. If these partners don’t
actually have a Kindle Fire HD in stock and on display for customers to try, the Kindle brand is
not achieving its “try-before-you buy” goal from this partnership. We suggest strengthening this
presence with larger signage, increased facing counts and at least one trial model available in all
retail partner outlets. If Amazon follows through on rumored plans to develop its own brick-and-

mortar stores, we would suggest eliminating retail partners, who seem increasingly dissatisfied
with becoming Amazon’s retail competitors.
We further suggest an increased attention to social media strategy. A brand manager
could actively engage Kindle users (or those looking to buy one as a gift) via Facebook and
Twitter by alerting followers to new content as it’s made available for download. Further social
media efforts could focus on tying a willing consumer’s content library to his or her social media
profile—instantaneously suggesting books, movies, songs and apps to like-minded Facebook
“friends.”
Naming conventions are something of a challenge for Kindle Fire products. As
mentioned earlier, Amazon Kindle Fire HD 4G LTE does not trip easily off the tongue. Because
“Fire” has been established, we suggest re-naming future iterations of Kindle Fire devices with
fire-related names.
 Kindle (the basic non-tablet Kindle Paperwhite and Keyboard e-readers).
 Kindle Fire – “Spark” (the $199 HD tablet with 7” screen and Wi-Fi connectivity only).
 Kindle Fire – “Flame” (the $299 HD tablet with 8.9” screen and Wi-Fi connectivity
only).
 Kindle Fire – “Blaze” (the HD 4G LTE with content delivered at “blazing” speed).
By more effectively leveraging the brand equity carried by the elements of the Kindle Fire
HD’s affordability, the existing customer connection enjoyed by Amazon and Amazon’s vast
content library we believe that we can grow the Kindle Fire HD’s market share by 5% over the
first year of this refocused campaign.

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