Borders Group CAndrew RothCyndi HilsabeckJeff Primos

Overview of Presentation Introductions History of Borders 4 P’s and S Borders Current Marketing

Situation Social Media Tactics Recommendation Deep Dive into Facebook

Apps and Blogs

History of Borders Group Inc. Founded in 1971 by brothers by Louis and

Tom Borders It originally served the Academic community

of Ann Arbor Borders opened its first large scale retail

store in 1985 In the late 1980’s and early 1990’s industry

sales grew to 1.4 billion and 1992 Borders was sold to Kmart Corp and eventually spun off to form Border’s Group

In the late 1990s and early 2000s, Stock prices were down, online businesses suffered losses, and shareholders questioned Borders Management.

PLACE

HQ in Ann Arbor, MI Employees 19,500 Online shopping 680 Bricks and Mortar box

stores Specialty Stores: Borders

Express, Borders Airport and Outlet Stores

1/3 of employees to be laid off, 1/3 of underperforming stores to be closed due to Bankruptcy

Product is King

Core products include books, text books, eReaders, movies, music, calendars, posters, and crafts.

To differentiate itself Border’s launched

BordersMedia.com

Price is a Problem

Amazon has leading titles for their

Kindle starting at 9.99. Border’s leading titles starting at

$15.95 Amazon’s Kindle has been deeply

discounted to $139.00 Barnes and Noble’s Nook is priced

from $149-$199. Border’s The Velocity Micro Cruz is

$119-$199

PROMOTION

Rewards Program –you can earn Border’s Bucks for achieving $150 in annual qualifying purchases.

Upgraded Rewards Program is offered to buy into for further advantages.

There is no comparison with their competitors. Amazon and Barnes and Noble only offer rewards if you sign up for their Visa or Mastercard.

PROMOTION

Borders recently entered into a partnership with JiWire.

This is a leading location based mobile company

This type of advertising is growing quickly

“As Wi-Fi usage increases, particularly in lifestyle venues like Starbuck’s and large Bookstores, its changing the way brands interact with consumers”

PROMOTION

Border’s offers weekly deals on their website

They are also in a major public relations campaign to ease fears about their Bankruptcy.

Gift cards, coupons and fullfilling online orders is still taking place.

SERVICE

Borders.com offers a full customer care area.

MARKETING PROBLEM

Border’s is in Bankruptcy This is a result of declining annual

revenues They have struggled to compete in

the eBook business. The bankruptcy will result in nearly

20,000 job losses Borders lead the market in the 90”s The Birth of Amazon was the death

of Borders.

Social Media Tactics

Borders core issue is sales

Tactics chosen on ability to generate sales with existing customer and create new customers

Tactics will use Facebook, apps, blogs, Twitter, and YouTube

Tactic One

What is the tactic Facebook Portal for customers to view authors

pages tied in through Borders Facebook page. Part of a greater marketing strategy for author

book signings and Borders events. Contest for fans.

How does it work?

Objectives Customer awareness of authors via posts on the

main Borders website as well as upcoming promotions.

Number one objective is to generate hype for authors and create a sense of community at the store.

Tactic one cont.

Social Media used in campaign Facebook

Main author’s page and promotion of events Twitter

Live tweets by authorYouTube

Video of event and winner of contest Measurement

Ultimate goal is additional sales Number of likes tied in with promotion on authors page within

Borders

Justification People trust other people’s opinions.

Target Market Both current and potential customer who enjoy books.

Tactic Two

•What is the tactic• Application created by Borders that allows for an author to self

publish a book within the Borders community• Contains all the tools necessary for creation, publication, social

media promotion and price control. • Additional costs for additional features.

• Objectives• Creation of community within emerging authors at Borders• New niche for Borders

• Social Media platforms used• Facebook• Twitter• Author’s pages tied in but Borders has authority to control

• Author can separate Borders link if desired.

Tactic Two cont.

Metrics Number of downloads Number of books published Revenue generated Cost of program

Justification New and changing marketplace

Competition

Target Market New and existing authors who are trying to

break into the marketplace.

Tactic Three

• What is the tactic• Application created by Borders that allows for greater

customization of Borders Facebook page by adding “Borders Community”

• Allows users to select topics of interest and go to a community created Facebook page for discussion of authors and interests

• Promotions and coupons for interest specific material

• Objectives• Creation of community with customer specific categories of

interest.• Promotions and coupons targeted to customers with specific

interests.

• Social Media platforms used• Facebook Creation of an app that sits on top of Facebook

Optional download

Tactic Three cont.

Metrics Number of downloads Customer activity on “Borders

Community” pages Usage of coupons sent through the

community.

Target Market Existing Borders customers and

new customers using Facebook.

Tactic Reccomendation

Tactic two used as recommendation Creates a Niche for Borders

Amazon.com has but only to publish Creates community for authors

and consumers Is focused on generating new

customers for new books rather then using existing customers to generate additional sales.

Questions

Thank you for your time

Questions?