Pubishers of books are in transition to market and customerdriven portfolio development with marketing as an effective means to help them. Amazon is both a threat and an opportunity to learn what matters most. Proven tools and new ones are briefly introduced to get a better picture of the steps to be taken to get to a new publishing portfolio.

1. Getting from
Publishing Books to
a Portfolio; Lessons
from
Hermann Buss
GEA Consultancy bv

2. 219 september 2013
Bookpublishers feel
being attacked

3. 319 september 2013
The
market
moves
constantly

4. 419 september 2013
Cowboys
seem to take
over

5. 519 september 2013
What used to work
doesn’t anymore

6. 619 september 2013
Publishing
is in
Transition

7. 719 september 2013
TRANSITION
to what...?

8. 819 september 2013
Mi
What could you do

9. 919 september 2013
Look at Developments
1

10. 1019 september 2013
Mi
Is there something to learn
from online
players
like....

11. 1119 september 2013

12. 1219 september 2013
Amazon is a giant...
Started in 1994
in Seattle, USA
91.300 employees
(april 2013)
Turnover $ 91miljard
growth 29% p.j.
range of products (in
ca. 16 categories)
Worlwide logistics
network
Marketleader online
sales
!

13. 1319 september 2013
MAAR MET EEN VISIE
BUT WITH
a
VISION

14. 1419 september 2013
Jeff Bezos wanted to combine
old economy with a concept
without being bothered by fysical
retail:
the internet

15. 1519 september 2013
HOW?

16. 1619 september 2013
1. Large
Selection
Digital gives endless choice and
inventory

17. 1719 september 2013
2. Ease of
Use
Digital boosts customerfriendly
solutions

18. 1819 september 2013
3.
Lowest
Price
Digital allows high margin and
lowest prices

19. 1919 september 2013
1. Large
Selection
2. Ease of
Use
3.
Lowest
Price
It yields an Effective Strategy

20. 2019 september 2013
MAAR MET EEN VISIE
COMPETITION
The Digital Engine is the perfect
way to gain advantage over the
competition

21. 2119 september 2013
MAAR MET EEN VISIE
INNOVATION
Amazon uses 6% of its turnover
for Research&Development;;
Dutch Bookpublishers do less
than 0,5%

22. 2219 september 2013
MAAR MET EEN VISIE
VALUE CREATION
New Competitors in Publishing
build up REACH first; Relevant
Content Comes in Later.

23. 2319 september 2013
MAAR MET EEN VISIE
Value Creation
Amazon accelarates its Reach by
Smart Cooperations and
Acquisitions

24. 2419 september 2013
ACQUISITIONS SINCE
1998.....
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Little A

25. 2519 september 2013
...WITH A PURPOSE
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
datamining
online
boekretailer
online
boekretailer
reminder
service
used
boeken
online financial.
transactions
online
webanalyses
rare
boeken
social community
boeken
gebruikte
boeken
Little A

26. 2619 september 2013
...WITH A PURPOSE
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
social community
boeken
Little A
Online Reach &
Technology

27. 2719 september 2013
...WITH A PURPOSE
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Online Reach &
Technology
selfpublishing
platform
e-books
mobile
print on
on demand
social community
books
Audio books
social community
books
used books
search environment
author
fansite
social community
books
Little A
Audio books

28. 2819 september 2013
...WITH A PURPOSE
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Online Reach &
Technology
social community
boeken
Little A
Self Publishing

29. 2919 september 2013
...WITH A PURPOSE
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Online Reach &
Technology
Self Publishing
succesful out of print &
selfpublishers
translations
in Englishs
Romance
thrillers, mysteries
scifi, horro, fantasy
romance,
Mysteries
Distribution
Agreement
liteary fiction,
memoires
comics
Children’s books and
Young adults

30. 3019 september 2013
...WITH A PURPOSE
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Online Reach &
Technology
Self Publishing
PUBLISHER

31. 3119 september 2013
...WITH A PURPOSE
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Online bereik
Technologie
Self Publishing
PUBLISHER

32. 3219 september 2013
MAAR MET EEN VISIE
LESSONS
There are three things we can
learn from Amazon

33. 3319 september 2013
1. Aim for getting Reach

34. 3419 september 2013
- FOCUS on a number of markets and genres and
realise therein the biggest and deepest offer
(catching up Amazon in all its breadth is out of
your reach anayway)
- LEARN to know all your customers in these
markets an realiase relevant Reach with them.
- MAKE as much as possible interesting products
for them (do it together in cooperation with
others or via takeovers)

35. 3519 september 2013
2. Realise ease of use for your
customer in everything you do

36. 3619 september 2013
- One click away design
- Ease of ordering
- Ease of searching
- Ease of marketing
- A low price, not necessarily the lowest
- Serve customers with products the customer
perceives as helpful

37. 3719 september 2013
- plan nieuwe dingen
- maak ze af en test ze snel
- stop er mee als het niets blijkt te zijn
- investeer iets minder en ga partnerships aan met partijen die
andere competenties hebben dan jij.
3. Innovate and Invest

38. 3819 september 2013
- Plan new things
- Finish them and test them fast
- Stop if it doesn’t work, kill our babies
- Invest in partnerships with parties that have
competencies you don’t have.

39. 3919 september 2013
What’s happening between Publishers
and New Entrants
high
low
low highCRITICAL MASS/REACH
RELEVANCE
needed
position
!
route via content:
publishers in transition from print
to digital/online/hybrid
route via media-equipment,
network or distribution channel:
e.g. Apple, Google, Amazon

40. 4019 september 2013
Wie neemt welke rol en positie tegen welke prijs?
high
low
low highCRITICAL MASS/REACH
RELEVANCE
Added Value
from
content
Added Value from
media and channel
needed
position
!
What’s happening between Publishers
and New Entrants

41. 4119 september 2013
Get big, get niche or get out!
high
low
low highCRITICAL MASS/REACH
RELEVANCE
needed
position
!
nr. 1 and 2
players
small niche
players
selfpublishers
specialist publishers,
science publishers
new entrants
nr. 3, 4 and 5
players

42. 4219 september 2013
Look at
Those Who Use Your
Products
2

43. 4319 september 2013
Who Are My
Customers

44. 4419 september 2013
What do they
consider important

45. 4519 september 2013
Make a distinction between products for
Endusers and other Actors
An Actor doesn’t use
the publishing product
but is part of your
businessmodel e.g.
Authors, advertisers,
distributors etc.
An Enduser actually
USES your
publishing product

46. 4619 september 2013
Get to Know your
Customers by gathering
Data about them

47. 4719 september 2013
Look what their (hidden) motives
may look like
Empathy map by Xplane.com

48. 4819 september 2013
SEGMENT AND
PROFILE

49. 4919 september 2013
1. Example of an Internetsegmentation

50. 5019 september 2013
Demographic

51. 5119 september 2013
Psycho
Graphic,
Benefits,
etc.

52. 5219 september 2013
Persona
marketing strategy
product strategy
innovations

53. 5319 september 2013
2. Example Dutch Public Media

54. 5419 september 2013
3. Example Dutch Mentality Milieus
Source: Motivaction

55. 5519 september 2013
4. Example Australia
Ref: ‘Books Alive, Reader Research’, prepared by Starcom for Australia Council for the Arts, 2008.

56. 5619 september 2013
You get to know
your Customer
and Her/His
Problems/Needs/
Benefits

57. 5719 september 2013
Look at the Portfolio
You Offer Them...
3

58. 5819 september 2013
Analyse your
portfolio and your
competition
with the GE
matrix

59. 5919 september 2013
Selfpositioning publisher
GE-matrix
high
low
high lowRELATIVE COMPETITIVE POSITION
MARKETATTRACTIVENESS

60. 6019 september 2013
Used Criteria
- market volume
- yearly growth of the market
- average profit margin
- added value to primary process
- possibility to innovate and differentiate
- market cyclicity
- intensity and diversity of competition
- impact on customer environment
- influence of political environment.
-marketshare
-growth marketshare
-image/reputation
-market knowledge
-commercial power
-product costprice
-efficiency production
-logistical performance
-product quality
-technological knowhow.
.
MARKET ATTRACTIVENESS RELATIVE COMPETITIVE POSITION

61. 6119 september 2013
EXAMPLE

62. 6219 september 2013
Resulting Basic Strategies
GE-matrix
FTE Middelen
5% 15% Voorschotten,
royalties etc.
50% 35% product
ontwikkeling
20% 25% promotie
20% 20% sales
5% 5% klantrelatie
high
low
high lowRELATIVE COMPETITIVE POISTION
MARKETATTRACTIVENESS
Selectief / managen op inkomsten
- bescherm bestaande programma
- concentreer investeringen in
segmenten waar winstgevendheid
goed is en de risico’s relatief beperkt
zijn
Manage op inkomsten
- bescherm positie in meest
aantrekkelijke segmenten
- waardeer productenlijn op
- minimaliseer investeringen
Terugtrekken
- verkoop op tijdstip waarop de
waarde maximaal is
- snij in vaste kosten
- niet meer investeren
Vasthouden positie
- investeer in maximaal haalbare groei
- concentreer inspanning op handhaven
sterkten
Selectief uitbouwen
- specialiseer rondom de (beperkte)
sterkten
- zoek naar wegen op zwakten te
compenseren en om te buigen
- terugtrekken als er geen indicaties
zijn voor aanzienlijke groei
Selectief uitbouwen
- investeer zwaar in meest
aantrekkelijke segmenten
- bouw vaardigheden op om de
concurrentie aan te kunnen
- benadruk rentabiliteit door
kostenreductie en productiviteit
Beperkte expansie of oogsten
- zoek naar mogelijkheden (met
beperkte middelen) voor expansie
- of: minimaliseer investeringen en
rationaliseer operatie
Bescherm en heroriënteer
- manage gericht op huidige inkomsten
- concentreer op meest aantrekkelijke
segmenten
- verdedig sterkten
Investeer om uit te bouwen
- ga voor marktleiderschap
- bouw selectief op sterkten
- verstevig kwetsbare gebieden
aantrekkelijkheid
new initiatives

63. 6319 september 2013
Make Strategic Choices for
Investment and Innovation
by using the GE matrix

64. 6419 september 2013
Analyse the RISK of
running away of
your Authors
during Transition

65. 6519 september 2013
Authorimage, Turnover and Risk
of running away have impact
Authorimage
Riskofrunningaway
0
0
5
0,2
0,4
0,6
0,8
1,0
1 2 3 4
Authorimage
Riskofrunningaway
0
0
5
0,2
0,4
0,6
0,8
1,0
1 2 3 4
DANGERLet Go
Not
important
Question
Mark

66. 6619 september 2013
Use other ways to
determine interesting
innovations for your
product portfolio

67. 6719 september 2013
Place your products and
development in another context...
PublishingPortfolioTM
Question
Problem
Need

68. 6819 september 2013
PublishingPortfolioTM
Place your products and
development in another context...

69. 6919 september 2013
..it delivers new insights..

70. 7019 september 2013
Product Connect
BELEVINGKENNISVER
STROOIING
-Offline
-
-Online
-Offline Boeken, ebooks
-
-Online Boekenapps
Social Transact
•leesclub
•community
•leestweets
in app bestel
mogelijkheid
-Event
-Crime-beurs
-Game, video’s
-Films
..or unexplored places..

71. 7119 september 2013

72. 7219 september 2013
Make the Unthinkable
Thinkable
4

73. 7319 september 2013
MAAR MET EEN VISIE
CONSIDER:
what would I do if I would invest
6% of my turnover in innovations
?

74. 7419 september 2013
Do I have...
Competencies
Capacity
Processes
...

75. 7519 september 2013
MAAR MET EEN VISIE
ALSO CONSIDER:
what would I do if Amazon would
enter my publishing area ?

76. 7619 september 2013
Of als
deze
jongens
hetzelfde
doen?

77. 7719 september 2013
...Het begint er al op te
lijken...
Online bereik
Technologie
Self Publishing
UITGEVER

78. 7819 september 2013
1. Grote
Selectie
2. Gemak
3. Lage
Prijzen
They Look For This

79. 7919 september 2013
Be Wiser and Smarter

80. 8019 september 2013
MAAR MET EEN VISIE
1Look at Developments
2
3
4
Look at Those
that Use Your Products
Look at the Portfolio
You Offer Them
Make the Unthinkable Thinkable

81. 8119 september 2013
Thank You!
Sources
- Rosales et al.,Amazon business
models, Heriot Watt University, Oct 2010
- Guy Kawasaki, APE, Author Publisher
Entrepreneur, Nov. 2012
- Stéphane Distinguin, Amazon.com: the
Hidden Empire, faberNovel, May 2011.
- McKinsey&Co, Amazon’s secret
sauce, CMSOForum, Oct 2012
- Bill Slawski, Amazon Acquisitions and
Investments, SEObythesea.com, Jul 2009
- Wikipedia.org
- Illustrations: Microsoft Office Online;
Slideshare
h.buss@gea.nl
M: +31(0)6 53 841 935
This is a translated presentation held in Dutch for the NUV (Dutch Publishers Association 19/9/2013)
Inspiration
-Andre Knol, GEA
-Guy Kawasaki
-Alexander Osterwalder