Emerging Markets: Growing Profitable Sales in New Territories 27 March 2013
May 17, 2015
Emerging Markets: Growing Profitable Sales in New Territories
27 March 2013
Ten years marketing experience in the publishing industry and recently completed his Masters in Marketing.
A proven track record of achievement in the areas of Digital Marketing, Business Development and Strategic Planning.
Contact Patrick: [email protected]
Patrick CrowleyDigital Marketing Manager
1. A little bit about us2. Accessing New Territories3. Pricing4. Pricing & Growth Per Territory5. Maximising Sales Impact on Volumes & Revenues6. eBook Analytics – Analytical Performance Data7. International Buying Behaviour
Agenda
http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global
• An Irish company that provides a distribution management system for publishers to get their eBooks to market.
• We have the widest market reach with over 1,000 retail channels and 25,000 library channels, all under one simplified contract.
• Sales channels in 60 countries, 50+ languages. Sales reported from 112 countries YTD.
• Our unique selling points put us at a distinct advantage over our competition in terms of cost savings to clients:• Digital Distribution specialist service offering• Maximum exposure to retail outlets and library channels• The most flexible and powerful software platform• All managed through a culture of collaboration and partnership. Our success depends on
our publisher’s success.
Who are ePubDirect
Publishers
Retailers
Challenge• Access to multiple
channels
• Sales reporting
• File storage
• Conversion
• Marketing
• Resources
• Margins
Simplicity in a World of Complexity
How it Works
Accessing New Territories
eBook Purchase Sources
International Reach – 112 Countries
United States of America United Kingdom Ireland Australia Canada France Italy Spain South Africa Netherlands New Zealand Germany Singapore Norway Belgium Switzerland Mexico Denmark India Japan Austria Brazil Hong Kong Finland Sweden Thailand Portugal Malta Romania Philippines Poland Greece Qatar Czech Republic Taiwan Israel Chile Luxembourg Russia Cyprus Iceland Argentina Venezuela Trinidad and Tobago Slovenia United Arab Emirates Croatia Korea Northern Mariana Islands Indonesia Namibia Jersey Bermuda Ukraine Ethiopia Grenada Botswana Latvia Bulgaria Cameroon Peru Nigeria Vietnam Bosnia and Herzegovina Guatemala Hungary Puerto Rico Samoa Isle of Man Zimbabwe Brunei/Borneo Falkland Islands Kenya Estonia Lithuania Monaco Guernsey Swaziland Cayman Islands Bahamas Jamaica Saudi Arabia Antigua & Barbuda Armenia Barbados Cambodia Colombia Congo Dominica Dominican Republic Ecuador Ghana Guyana Haiti Malawi Montserrat Myanmar Nepal Netherlands Antilles New Caledonia Palau Panama Saint Kitts and Nevis Saint Lucia Serbia Sri Lanka Tanzania Turks and Caicos Islands Uganda Uruguay Virgin Islands Western Sahara
USA UK Ireland Australia Canada Other0%
5%
10%
15%
20%
25%
30%
35%
30%
28%
10%
7%
4%
21%
% Value
Territory % Value
US IE GB CA AU MY SG NZ FI IN ZA PH BM TR 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Global Libraries – 2012
Pricing
• Most publishers have difficulty with their pricing policies, because they don’t have any (don’t tell anyone!)
• Lack of a pro-active pricing policy results in crucial changes in volume and value in each territory, which can have a huge affect on MARGIN
• One of the biggest challenges is that eBook buyers tend to understand the competitive landscape better than publishers
• Another major challenge is Amazon’s disputed ‘dominant position’ in the market. Harder to replace lost print sales.
• Compounding the problem is the fact that many publishers tend to shoot very low to get high volumes, without a full understanding of the margin consequences
This race to the bottom makes life harder for everyone
Pricing: Expectation and Behaviour
Publishers Expectations
Publishers Pricing
Behaviour
Buyers Expectations
Buyers Purchasing Behaviour
Setting the Price: A Trade Off
• Price Optimization is a complex process that involves 2 distinct components
1) Publisher’s existing price and cost structures
2) Customers Behaviour
• If I decrease my price, how much volume do I need to gain to improve my profitability
• If I increase my price, how much volume can I afford to lose, before reducing my profitability
Relationship between Price and Sales
Price €
Sales Volume
€10
€025 75 100
Pricing: UK & US
BISAC US UK
Fiction : General (FIC000000) $5.54 $4.51
Bus & Economics : General (BUS000000) $10.77 $6.23
History: General (HIS000000) $8.85 $5.82
Juv Non-Fiction: General (JNF000000) $6.87 $4.87
Biog & Autobiog : General (BIO000000) $10.24 $3.59
Religon: General (REL000000) $8.36 $3.72
Self-Help: General (SEL000000) $10.72 $8.53
Sports & Rec : General (SPO000000) $11.14 $7.47
Political Science: General (POL000000) $12.90 $6.82
Total Average $9.49 $5.73
Pricing: UK vs US
History: General Biog & Autobiog : General Religon: General $0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$8.85
$10.24
$8.36
$5.82
$3.59 $3.72
Amz.com ASPAmz.co.uk ASP
34% 64% 55%
•Elastic = many substitutes• Inelastic = few substitutes
Amazon.com No titles in category
Fiction 598,000
Romance 99,000
Nonfiction 915,000
Biographies & Memoirs 63,000
Business & Investing 95,000
History 112,000
Politics & Current Events 103,000
Religion & Spirituality 156,000
"The important thing is not to stop questioning." Albert Einstein
Innovative eBook Analytics Suite Graphical views on eBook performance Detailed insight through title level
dashboards Self-service access to key
measures/reports
Accurate, timely business intelligence
Graphical KPIs Detailed: title/retailer reporting,
YTD/month
ePubDirect
Analytics
Optimise
Measure
Report
Analyse
BISAC US UK
Fiction $5.54 $4.51
Bus & Economics $10.77 $6.23Biog & Autobiog $10.24 $3.59
Price vs. Sales vs. Margin
Price €
Sales Volume
€10
€025 75 100
http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global
Super Powers
India
1,210,193,422
UK
63,181,755
While only 2% of Indian population has purchased an eBook – that number is > UK with 17% penetration
http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global
http://www.slideshare.net/PublishersLaunch/kelly-gallagher-ebooks-go-global
Free as a Driver in Emerging Markets
Do’s and Don’ts
1: Broaden your sales mix and decrease your risk by ensuring your titles are available to all territories by working with all retailer and library channels
2: Maximise your margin by establishing an eBook pricing policy – implement this by territory, start with the biggies
3: Test your pricing – see what works (easy in digital!)
4: Make informed decisions utilising Analytics, review regularly
1: Wait. And watch the biggest get bigger then decide to do something (learning curve)
2: Base your eBook pricing strategy on the legacy model for print – they are different
3: Race to the bottom on price
4: Go it alone – lean on us!
Thank You & Questions
ePubDirect Events:
11 April BIC Breakfast – Digital Panel15 April LBF, X555 @ Digital Zone24 April Supply Chain Visibility13 May Bookseller Awards
ePubDirect Archive:
https://vimeo.com/58629421 Metadata that mattershttp://vimeo.com/55015307 Organic SEOhttp://vimeo.com/56899413 Retailer RequirementsBlog Pricing, DRM, Tax
Contact us for more information - today!