Indigo & Music Inc Case Analysis

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lower price books, and independent booksellers posed a threat by the local support initiatives.

In the online market, the easier accessibility and little cost of digital books attracted a large number of consumers. Famous website such as Amazon offering a huge inventory and let clients have more choice. Indigo’s online sell faces fierce challenge considering its lack of competitiveness.

Ø Target market

As books and cultural products have long life-cycle stage and smaller variability, Indigo’s Initial target market is mass population, they provide products in every kind to meet

different customers’ need. Considering the coming of digital world, indigo has new target market which focus on the new e-generation for the online product.

STRATEGIES Focus on the 4 ‘Ps’

- Products

Company should be sensible for the tendency of the clients’ interest change, develop new product strategy following the customers’ demands. They also have to enhance the eReader program, make it more competitive. And use the product life cycle strategies, devote to developing its own product style. Don’t limited in the physical commodity sales, service sales that can create new attraction.

- Price

In the short term, face to the competition of the low price from US discount retail and the large generalists, company can reduce the product prices to improve sales and generate cash flow, then gradually transition to the customer value-based pricing strategy, enhancing affordable products that offer intrinsic quality.

- Place / distribution

It’s necessary to adjust the physical stores, make reading become an enjoyable experience. Beyond the beautiful look environment, the function is more important, such as build a multi-functionality place where clients to read, to take a free discuss in chatting room, listing music and watching film in audio-video room or be inspired by a cup of coffee. Making traditional book store become a combination of entertaining and educational place, change the core product from the commodity sale to service sale.

In additional, company should transfer his focus from the tradition physique sell place to the virtual sell place which means the website and the online shopping center. Financing the improvement of the website interface and ensure a convenient, particle and stable online shopping system, at the same time, guarantee the security and reduce the digital money transfer risk. Improve after-sales service, especially for online shopping.

Indigo should also reduce costs for shipping and goods picking for online sales, optimize the supply chain to support product offering, set up information management system in order to better research and collect customer information.

- Promotion

Seasonal discount with the segmentation of client, such as stationery discount around the school return. Company can also offer more privilege in membership cards to capture customers’ loyalty.