PROPOSAL FOR PENGUIN BOOKS S/S 2013
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E X E C UTIVE SUMMARY
Flux proposes to Penguin Books, creating a space that holds all their products and books in one location, moving Penguin forward into the digital age. The Penguin Library aims to target a wide audience by having a range of rooms to accommodate their reading preferences.A mix of traditional reading combined with modern technology will move Penguin forward and reach out to a younger, more technology advanced audience, resulting in brand loyalty from a young age, and continued loyalty from others.
B R A N D OVERVIEW
PENGUIN BOOKS • Currently Penguin has a well-established company and has been since the 1930s when they first started. They already have a website where customers are able to buy books online, looks at best sellers, recommends books that are just being released and also offers a look at classic authors and books. The website has a clear layout and the branding on the page is also clear. They offer a chance to win competitions and for the customer to know what is going on within the company. As well as selling books online, Penguin also sell books within most commercial stores such as Waterstones, WHsmiths and Boarders. • As well as retaining their traditional standards with selling books Penguin are also entering the modern world and embracing the use of technology within their brand, Penguin have I pad apps for childrenBaby Touch, and for their travelling books, allowing them to interact with different consumers other than just people who read books. The website also offers a chance for people to look through the classic achieves and also offers them a chance to discuss with other 4
readers what they thought of the book. • Penguin also has a section called Spine Breakers, a section for teenagers that offers them the chance to review books, interact with people of their age, read reviews and interviews with authors and see film reviews and trailers.Penguin also offers a sub brand, Puffin. Puffin is for children books enabling the brand Penguin to reach out and encourage readers at a young age, something that is becoming less as technology is more advanced. • As well as being a well-established publishing company they also work in association with the aids charity RED. Certain books are published with a red spine, this shows that if the consumer buys this product then 50% of the profits will go to the Global Fund, who use 100% of this money to finance HIV/AIDS health and community support in Africa. This means that not only does the customer have a new book to read; they have also helped save someone’s life.
I M P ROVEMENTS
PENGUIN ANALYSIS Although being a well-established company, Penguin need to improve on some factors to make sure their company is the best it can be in present day. The publicity of Penguin isnâ€™t what it used to be. People are still aware of Penguin as a brand, however they are not so aware of everything they offer, for example people are not aware that Penguin also offer more than just books, they offer merchandise such as deck chairs, mugs and posters. As well as merchandise Penguin offer a community online for people to talk about their experiences they had whilst reading their book e.g. what they liked, what they didnâ€™t like, their favourite part etc. this experience offers the chance for people to connect with other people but do it online. However this is not being used, as consumers are not aware that its here and that they have access to do so.
Penguin also have no physical space. Even though they have an online presence and a presence within other stores, Penguin have no place to call their own, where consumers can come in and experience just Penguin and what the brand has to offer. Even though Penguin offers you the chance to download chapters of books to sample the book before you buy and download it to your I pad or eBook, they only offer you the chance to read contemporary books by contemporary authors, rather than having a wider range of books and including some classics such as Alice in Wonderland and The Legendary Battles of Alexander the Great. By including these in the list of books people are able to download it would mean that more people of different age groups could be involved in the advancing technology.
PENGUIN LIBRARY As a trend company we suggest to the brand Penguin that they develop a physical space in London representing a library. The library will have different rooms are exhibiting different experiences related to Penguin. There will be a CafĂŠ, Shop, Library, Augmented Reality room and a Puffin Library room. The library will showcase Penguin books, classic and modern, I pads and eBooks on display and available for use, so people can experience them before buying them, there will also be readings from authors about their new books via hologram or physically having them there.As well as having this library, we will also have an area called the Puffin Library. This room will be dedicated to younger readers, here they can design book covers, have readings from childrenâ€™s authors, and have a chance to meet other children with similar interests and experience the I pad and eBooks.From Monday to Thursday the library will be exclusively open to school from around and near London, offering them the chance for private readings and their own book club.
Friday to Sunday the library will be open to the public and will offer the experience to families. In the augmented reality room, there will be a chance for the consumer to experience a book as if they are actually there in the book surrounded by the characters and the plot, much like an audio book, however there will be holograms surrounding them emerging them in the book. This experience will be for people who are interested in technology and want to experience books in different ways rather than just reading the book. This also gives a chance for people to experience the book in new and exciting ways together, making sure that we are using technology with an emotional connection. 2013 sees the 20th anniversary of audio books; this would be the perfect time to launch the Penguin Library, as it would coincide with the audio books anniversary. As Penguin are a trusted brand, people are more likely to trust and want to experience books in a different and new way, if it is suggested to do so or offered to them by a traditional brand.
HOW A ND WHEN WE W I L L ACHIEVE THI S
PENGUIN LIBRARY Through in-depth research and looking at previous years profits there has been a clear rise of profit by 9% in the first half of 2010. If this continues to increase the way it had done in the next two years then the possibility of this library becomes a reality. There is roughly two and a half years to build this library and make it ready for the launch in 2013. With the possibility of sponsorship from a reputable company that is related to reading such as The Times or The Guardian or government funding, this further increases the chance of the library being built. The increase of profits would mean that running the library and affording the costing would be possible, we would also have a donation box in the foyer for people to donate money to the charity RED. By having a ÂŁ2 charge for adults and free for children it would mean there would be more income to go to running the library.
The profits made from the cafĂŠ and the shop would also go back into running the library and providing it will the essential items, e.g. food, drink and merchandise are all high margin products this would mean they would make a good profit when they are sold. The launch of the library could coincide with World Aids day on the 1st of December. Means that 50% of the takings from that night could go to the charity as well as going to the Penguin library. This means that Penguin would be launching their library but also raising awareness of a good cause. The location of the Library will be situated on Southbank London. This is a popular tourist destination, as well as being well located near several main transport locations.
C O ST I N G CONSIDERATIONS
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• Billboard- £7000-8000 per month for a large billboard advertising, mobile billboard e.g. on vehicles £2000 • Radio advertising- dependant on time slots and length of ad. Typical radio slots of 25 seconds can cost around £250-£1000 dependant on frequency and amount of listeners • Magazine advertising- prices start at around £1000 per colour page and above £10,000 per page in certain publications • Newspaper advertising- usually charge single column centimetres, if it is classified ads, or up to £10,000 for full page magazine adverts if it is in the display section • Top end advertising is TV ads. Can demand up to tens of thousands before running an ad campaign does depend on frequency and viewing audience, with this and radio there are going to be additional cost for creating the advert such as hiring actors, production crew etc.
Building the property Security Staff Furniture Food and drink Cost to run everything electrics etc. Advertising
Battersea power station estimated £400 million worth, renovation will cost estimated £500 million- using as an estimate because of location and size. Rough cost to build out library £42 million - £211 million. Profits made in 2009- £109 million. Profits made in the first half of 2010- rose 9% to £493 million. Pearson- penguins parent company made a 79% increase to £178 million. EBooks are supporting sales and increase. Roughly 2 and half years to build and create this library should be enough time raise the money needed. Government funding is possible- libraries and galleries are still entitled to receive it despite cuts. Using government funding to build the building, then profits from books sales will cover the rest of the costs.
FUNDING IN OPERATION
When the library is open to the public, need to consider how we will afford to run it every day, profits from a yearly basis could cover it. Essential sales from gift shop and food and café, sell high margin products then will gain a profit. Would also need to take in account the advertising costs. Donation box in the entrance to cover the funds for RED charity. £2 charge for adults, free for children under 12. Will need to cut some of the rooms that are not essential to the building- no events room, plenty of them in London- may not be considered to be used, audio room not essential can be combined with another room. Penguin shop, café, and library are essential to attract and fund interest
The Times or the Independent- read by thousands all over London, commuters etc. respected newspaper, would mean more advertisement, and more funding. Penguin already work with woodland trust producing green books, however they are a charity so funding wouldn’t be possible from them, how if they were combined would mean the tree decoration would fit in, build up a good reputation, family based and helping the environment.
R A D I O ADVERTISING
The imagination is the work of the mind that helps one create. It provides meaning to experience and understanding to knowledge. For our radio advert we want the listener to be in touch with their imagination; to experience a feeling of curiosity through their own thoughts. Our radio advert is no more than 30 seconds long, It invites the listener to imagine a story through a series of sounds, asking the listener a rhetorical question where will your imagination take you?? The listener can become confused, and curious by the fact that they have been asked to question their own imagination. They will want to learn more, this is how this advert is successful
as it directs the listener straight to the website to learn and find out more. This is where they will discover the opportunities that the Penguin library has to offer. We feel that the advert would be more appropriately aired on a radio station such as BBC Radio 4 as they have book readings on this channel and we would be targeting the write kind of people. The advantages also in having the advert on radio, is that children may be listening to it in the car and would interact with the noises and want to know more about what they mean, so it also becomes a learning game and exciting for them.
P R I N T A DVERTISING
This interactive billboard concept is based on consumer interaction and technology to enhance their experience of the brand. Using a classic image from Penguin stories, combined with a QR code, the viewer scans the code with their smart phone and unlocks a story that they can edit to change the outcome. After they have edited the extract of the story they will be taken to the Penguin website, where they will be given further information about purchasing the full story, as a book, eBook or an app.There is also a Facebook option, where they can upload an exert of the story and share their experience with their friends.
Alice was beginning to get very tired of sitting by her sister on the bank, and of having nothing to do: once or twice she had peeped into the book her sister was reading, but it had no pictures or conversations in it, `and what is the use of a book,' thought Alice `without pictures or conversation?'
A LT E R N ATIVES
ADVERTISING ALTERNATIVES As a consulting company Flux concern is to offer business growth and to make sure that Penguin are able to achieve the concept successfully. Through research of costing and location, Flux would like to offer penguin an alternative solution, should they feel they cannot succeed with the original concept. • Combining with another library- would scale down the cost of the project, however would not have the same impact as Penguin having their own space • Taking the concept into several libraries around the country- would mean mass publicity for Penguin all over Britain. By getting more people involved the more publicity and recognition Penguin will get. • Using an existing building- by using an existing building and renovating it, Penguin will still have their own space, but the costing of building the space will decrease, meaning more independence for the library as Penguin will not have to rely on government funding. • Galaxy book club- combining with a chocolate company that is as well established as Galaxy, would mean a secure sponsorship and would also relate to Galaxy’s’ existing book club online. 14
Flux would also like to offer alternative advertising to Penguin. •Introducing television advertising- by introducing television advertising to the brand, Penguin would open up to a wider audience. Penguin would also be able to target their consumer; during specific times of the day e.g. 3pm to 5pm is prime time children television programme slots.
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ADDING MOMENTUM TO YOUR BRAND FLUX is an online trend forecasting and consultancy service imparting the latest in technological advances to its clients. Offering the most contemporary and influential digital information updates from around the globe, Flux provides its clients with cutting-edge consumer and market insight.