Barnes & Noble Almost Pull Off A Gutsy Marketing Move

Missed It“Missed it by that much….” – Maxwell Smart (Agent 99)

When I saw the headline, “Barnes and Noble offers 30 free e-books to switch to Nook” I thought, oh yeah, now we’re talking. When you are competing with the industry leader who has a stronghold on the market, you need to do something pretty dramatic if you’re going to get a leg up. Giving 30 free e-books to switchers would have been just the kind of bold, ballsy move that could have changed the tide, at least a little. Alas, it turns out Barnes and Noble isn’t that gutsy after all and this promotion isn’t going to do a damn thing. The 30 free books, you see, are chosen by Barnes and Noble and span a wide variety of titles from cooking to history to fiction. Great, you gave me 30 books, of which if I am lucky I might be  interested in one or two. They claim it’s a $300 value. Some value.

You see, the real problem is if I already have an Amazon Kindle, I have all my books already stored there. I don’t have access to them on the Nook and this creates a nice lock in for Amazon. Now if you allow me to take 30 of my favorite titles over, and make it even better, the rest of my titles for a nice discount price, you will be able to generate switchers. What would this cost Barnes and Noble? Plenty to be sure but what’s the value of a new lifelong customer? This game is hardball and either you step up and play or you’re going to be out of the game soon.

The same thing can be seen in the tablet wars. Apple is the dominant player with the iPad. Competition is coming now from various Android tablets and most recently HP. But the HP tablet starts at $500 and many of the Android tablets are close to the same price point. That’s the same price as the iPad and like it or not, those tablets are just not as good as the iPad yet. Price being equal, people are going to choose the iPad. If these alternative tablets are going to make any headway, someone is going to have to through down a price like $300. This is not about profit or loss at his point, when you are trailing a dominant player like Apple, you’ve got to grab market share anyway you can.

Data is King in the Connected World

DevicesI love my Amazon Kindle and so do a lot of other people. Amazon just announced for their top 10 books, Kindle versions are outselling print editions by more than 2 to 1. One of  the reasons I love the Kindle so much turns out to be one of the best business decisions Amazon has made; Kindle software is available on a variety of platforms, including iPhones, Android phones, iPads, PC’s and Macs. Amazon has not forgotten they are first and foremost a reseller of books, and they have all the bases covered. Best yet, though, is the Kindle software keeps your books and most importantly your place in those books in sync across all your devices. Start reading a book on your Kindle and pick right up on your iPhone.

The key point here is that we are not only living in a Connected World but a device world. The world is littered with millions of devices of all kinds and more people are finding themselves with more than one. When you have multiple devices, the critical factor becomes keeping your data in sync with all of them. The Kindle happens to be one of the best examples of keeping data and state beautifully in sync. We are going to need to see this more with the other applications we use regularly.

This is why we are seeing such a push toward using the cloud, a fancy term meaning the Internet, for these kinds of services. When applications run on the Net, it’s much easier to maintain state and data across devices. Google’s Gmail is another great example of this. You can easily connect to and maintain all the read statuses wether you’re using an iPad or an Android phone.

In the Connected World it’s just as important to be connected to your data as with other people.

Kids and Ease of Use in Technology

Any parent with kids probably realizes this, but kids are incredibly savvy with technology. They have no fear or preconceptions about anything, so they are willing to jump in and try anything. It’s one of the things that’s so beautiful about kids, before they get tarnished by the world.

I learn so much from watching my kids work with technology. I learn about the future. Having kids is like living with your own personal crystal ball. I also learn a great deal about user interface and ease of use in tech products. My daughter, when she was just nine, picked up my iPhone and knew just what to do with it, no instruction needed. That’s when I knew it was a most amazingly built device. I think every technology company should have kids employed in their labs to do their user testing. If the 5 year old can master it, you’re ready to ship.

Tyler Gray realized the same thing and put it further to test with his iPad and his 5 year old son Cash. I’ve included the video in this post, and here also is a link to the original Fast Company article.

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Comic Books and the iPad

iPadI’ve been saying this for awhile now, comic books on the Apple iPad are a massive opportunity. The large color screen is perfect for this kind of content. I would even argue that it’s a big strategic advantage the iPad has over the Amazon Kindle. The Kindle is the perfect device for black and white books with it’s superior e-ink display but when it comes to content like comics or color magazines, the iPad can do things the Kindle can only dream of. As a comic book lover, I’m pretty excited about the possibility of comics on the iPad and I would seriously consider getting one if for no other reason than to read comics.

There are indications now that Amazon may try to make a new Kindle with color and multi-touch technology, bringing it much closer to an iPad. I think it’s very dangerous for Amazon to rush headlong into a competition with Apple on their own turf. Maybe the smart play is to remain the dominant player in black and white e-ink technology and let Apple have the rest. Amazon’s strength has always been traditional black and white books, not magazines or comics. Here’s an even smarter play, make a full iPad version of the Kindle reader. Amazon needs to remember their focus, they are a bookstore not a hardware manufacturer. By making a great Kindle reader for the iPad, they stand to sell more books from their online bookstore, even possibly cutting into Apple’s store.

2010 will be THE year of the tablet computer as Sony has also said they want to enter this market. No doubt there will be others. 2010 could also be THE year traditional publishing makes the turn to digital distribution. People have been predicting the death of traditional publishing for years now. These new tablet machines go a long way to bringing that prediction to pass.

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