A DECK FOR PRACTICE

BACKGROUND, CHALLENGES, TARGET, OBJECTIVES, BUDGET

account planning

Fiscal YearRevenues

(millions of CAD)

YOY Change

(millions of CAD)

YOY%

Change in Revenues

2011 1017.3

2012 934.0 -83.3 -8.2%

2013 892.5 -41.5 -4.4%

EBITDA has fallen

over 3 years

But challenges persist: Decreasing sales

$73M in FY2010

$30M in FY201359%

Indigo struggled in e-book reader

space with Kobo Inc., and sold

stake in Kobo2

1 BookNet Canada, “The Canadian E-Book Market”2 Matt Hartley, “New chapter for Kobo as firm sold to Japan’s Rakuten”

But challenges persist: Alarming industry trends

15% of Canadian book sales now

digital, paperback and hardcover

book sales have suffered1

Innovator’s dilemma: any online

book sales on Indigo.ca

cannibalize physical book sales

Brand values: Old and new

BOOK RETAILER

CREATIVE HAVEN

This change has not been well communicated to consumers

Expand brand values to include creativity in the form of discovery

The problem is: We plan to:

Creativity knows no bounds in terms of age, lifestyle, income or gender.

Target market

The underlying characteristic that binds these various segments

together is the appreciation for leisure and the arts.

While Indigo’s first objective is to be a creative department

store, it is also a lifestyle store.

While Indigo’s first objective is to be a creative department store, it

is also a lifestyle store.

Spending : Average middle class incomes, greater spending power because of childless households

Purchases: Spend freely on books, music, natural foods, and electronics

Follow: Pursue originality by following latest in fashion, food, and wine

Activities: Athletic activities such as yoga, Pilates and jogging

Attend: Movies, music festivals, art galleries, and museums

Target market: Singles scene

Young singles pursuing lively, active urban lifestyles; progressive outlook with desire for

freedom to make decisions completely on own without answering to an authority figure.“

Spending : Childless, have discretionary time and income to spend on themselves and to pursue active social lives

Purchases: Latest in fashion and electronics, while being socially conscious consumers

Follow: Nightlife, dancing, and listening to music

Activities: Film festivals and art galleries

Attend: Frequent travellers, both for business/pleasure, but still find time for leisure

Target market: Nest starters

Affluent and highly-educated childless couples residing in fashionable neighbourhoods

in big Canadian cities; Progressive and believe that people should be able to construct

their identities and lives as they please“

Spending : Second wealthiest cluster in Canada

Purchases: Attracted to well-designed products as they place a high value on aesthetics and the pursuit of originality

Follow: Being philanthropic members of political/cultural/environmental groups

Activities:Patrons and benefactors of museums, art galleries, orchestras, and the theatre

Attend:Vacation homes and trips abroad

Target market: Prosperous parents

Wealthy middle-aged urban sophisticates with university-aged children living in

the city; Progressive outlook on life and value cultural diversity and are not afraid

of change“

Objectives

• Aim to reach 95% of target market and achieve a

frequency of 7 exposures• GRP goal = 665

The marketing objective

Communicate Indigo’s evolution, generating brand awareness

and ultimately purchase consideration amongst consumers

ObjectivesThe business objective

• Increase purchase consideration

• Increase non-book sales by 20% by end of next

fiscal year

Change from a brick-and-mortar bookstore into a full-fledged

creative lifestyle third space

Budget

TV, digital, print

$17.6m$40k

Desire to Inspire Sweepstakes

Surprise and Delight

In-Store Sessions

In-store Scavenger Hunts

Pop Up Shops

$322k

$80k

$356k

$200k

STRATEGY, BIG IDEA, VIDEO, PRINT, MEDIA

creative execution & media

Brand truthAt the core of the Indigo brand experience are the

moments of contemplation that books can bring.

These are moments in which you learn a little bit

more about yourself.

Human truthInquisitive, imaginative, actively passionate about

creativity – it’s not just a hobby, it’s a lifestyle.

Category truthMany brick-and-mortar bookstores have failed to

notice the shift in consumer intention towards a

more actively creative lifestyle.

Key insight

They need a space like Indigo.

When it comes to our inquisitive,

imaginative, and actively

creative spirits, they just need a

third space for themselves to

discover and explore their

creative tastes – without inhibitions.

Creativity isn’t just about discovering other worlds.

It’s also about those serendipitous moments where you discover a

little something about yourself.

The big idea

Inviting, contemplative, whimsical, empathetic

We may be inviting you into our world, but we do it in a way that is

empathetic to your individual creative tastes.

There’s no pressure to come into Indigo, and that’s the point.

Voice and personality

“

Print advertisements

Print advertisements

Primary goal: build an air of sophistication and creativity around the

products and brand

Secondary goal: communicate that Indigo’s expertly curated

products can help everyone to live a more creative life

1

2

“Desire to Inspire” Sweepstakes

Consumers will have the chance to use an online tool to curate their own dream room in their house and win $1000 to bring their dream space to life.

Across 7 major Canadian cities, an indigo

painted blue road will lead up to the

pop up shop where consumers can shop

all of Indigo’s lifestyle product lines. The

first 50 people in the pop-up shop will

receive $50 to spend at the shop.

Out-of-home: Pop-up shops

Blocking chart, TV, magazines

media planning

Complimentary to

traditional executions

Used to reinforce Indigo’s

rebranding and “Discover

you” message

Social media

Blocking chart

Mar Apr May June July Aug Sept Oct Nov

TV

Print

Sweepstakes

Surprise & Delight

Scavenger hunt

Pop Up shops

In-store sessions

Magazines

RESULTS, FINAL THOUGHTS

conclusion

Objectives

• Aim to reach 95% of target market and achieve a

frequency of 7 exposures• GRP goal = 665

The marketing objective

Communicate Indigo’s evolution, generating brand awareness

and ultimately purchase consideration amongst consumers

ObjectivesThe business objective

• Increase purchase consideration

• Increase non-book sales by 20% by end of next

fiscal year

Change from a brick-and-mortar bookstore into a full-fledged

creative lifestyle third space

creativity knows no bounds.

At Indigo, we believe that a “third space”

shouldn’t only exist for coffee lovers.

Exploring your inner creative side in a

contemplative space is necessary and fulfilling

in a world that is obsessed with a “go go go”

mentality 24/7.

we’ve created them just for you.

Serendipitous moments of exploration and discovery are

the ones that we pride ourselves on most at Indigo.

Icon credits

From the Noun Project:

David Marioni, Milky - Digital innovation, Luis Prado, Aha-Soft, Korokoro, Arthur Shlain, Thomas Helbig, Jim Slatton, Boudewijn,

Mijnlieff, Evan Shuster, Artworkbean, Iconathon, Umar Irshad