Marketing Report for Bookloverparadise: Analysis and Recommendations

This report analyzes the marketing performance of Bookloverparadise, an Australian bookstore chain, examining its sales data from 2015 to 2018 and its competitive environment. The analysis utilizes Porter's Five Forces model to assess the company's position relative to competitors, substitutes, suppliers, and customers, highlighting the impact of online platforms. The report also explores lessons from Amazon bookstore's success, emphasizing the importance of product differentiation, cost leadership, and online marketing strategies. It further discusses the potential of disruptive technologies and subscription models to enhance sales and profitability, concluding with recommendations for Bookloverparadise to improve its market position and leverage technology for growth. The report also includes performance review and competitive analysis.

System04099
[COMPANY NAME] [Company address]
MARKETING

Contents
Introduction...........................................................................................................................................3
Background............................................................................................................................................3
Purpose.................................................................................................................................................3
Performance review..............................................................................................................................4
Competitive analysis..............................................................................................................................6
Conclusion.............................................................................................................................................8
References...........................................................................................................................................10

Introduction
The report brings out a discussion on Bookloverparadise, which is a bookstore in Australia.
The report elaborates the introduction to the company, and competitive analysis, which is
based porter`s five forces model. The report has tried to find, attain, and gain the competitive
advantage by identifying and analysing the sales and Gross profits of range of books. The
analysis conducts learning from industry`s top bookstore such as Amazon bookstore and
eBay.
Background
BookLoversParadise is an Australian bookstore, which has four retail outlets in Australia.
The company undertakes to sell non-educational books. The store was established in 2007
and headquartered in Melbourne, Adelaide, Brisbane, and Sydney. Furthermore, the company
has been experiencing decline in the sales in some retail stores since 2013. To combat these
issues and enhance the sales of the company that promotes the operations by making efforts
to reach maximum customers via internet. The website will come up with comprehensive
catalogue of the products and the customers can come up to visit related store to order, which
can be delivered.
Purpose
The main purpose of the report is to examine how Bookloversparadise has been performing
to undertake the data of sales from 2015 to 2018. Apart from this, the report will analyse the
competitive landscape of Bookloversparadise, which has been affected through technology.
The analysis of Amazon bookstore is helpful in increasing the sales and then become
successful like “Amazon bookstore.”

Performance review
Travel Escapes
Autobiolography
Home and Gardening
Cookbooks
Children Books
Health & Fitness
History
Fiction
$- $50,000.00 $100,000.00 $150,000.00 $200,000.00
BookloversParadise
Sales 2018-2019
(Dane Chea)
2019 Sales 2018 Sales
(Source: refer to excel file)
From the above graph, it is seen that the company offers a wide range of products such as
fiction, history, health & fitness, children books, home, gardening, travel escapes, and
autobiography to customers in Australia. The statistics represent sales of two years 2018 and
2019, where fiction sales is more than $ 1,50,000. Furthermore, the sales for history books
and cookbooks is minimum. Furthermore, some of the statistics regarding some books is
quite changing in which travel escapes and fitness books face decline in in 2019 sales as
compared to 2018 sales. In 2018, the sales for travel escapes in 2018 waas more than $50000,
which fell down to less than $30000. Furthermore, the sales for autobiography was quite less
than $20000 for both years. The sales for children books in 2018 and 2019 are marked at

same level, which is more than $100000. The revenue from home, gardening was high nearly
more than $110000 in 2018, which has decreased less than $50000. The sales for history has
been marked at same level 2018 to 2019. The sales from Health & fitness has decreased from
2018 sales and reached nearly $20000.
Travel Escapes
Autobiolography
Home and Gardening
Cookbooks
Children Books
Health & Fitness
History
Fiction
$-
$2,000.00
$4,000.00
$6,000.00
$8,000.00
$10,000.00
$12,000.00
$14,000.00
$16,000.00
$18,000.00
$20,000.00
BookloversParadise
Gross profit 2018-2109
(Dane Chea)
2018 Gross profit
2019 Gross Profit
(Source: refer to excel file)
The above graph represents decrease in total gross profits, which was $ 59447 in 2018 and
$51075 in 2019. The state for travel escapes, home, gardening, cookbooks, health, and fitness
are marked in danger and some of the products is under warning state. The overall
performance for company`s items signify that the company profits is in danger. The
profitability for total escapes books raised in 2019. As far the autobiographies gross profits is
concerned, it is seen that the gross profit for 2019 is more than 2018. Home and gardening
says that profits for 2018 is less than 2019, which means this has shown that profits for 2019
is more than 2018. The critical situation for profitability reflects that history, health, fitness,
history, and children books sales have been falling (Verma, 2018).

Competitive analysis
Five forces model includes buyer`s power (bargaining power of customers), threat of
substitutes, rivalry amongst the competitors, bargaining power of suppliers, and threat of
entrants. Therefore, it will come up with analysis of competitive intelligence of
booksloverparadise with an aim to focus on competitive rivalry (Roos, 2019).
Threat of substitutes
Online platforms in Australia such as Book depository, Amazon Australia, Abbey`s
bookshop, Dymocks, eBay, QBD books, Angus & Robertson, Wordery, and Booktopia
creates a threat to Booksloverparadise because customer often switch to online platforms to
purchase books (Finder, 2019). There are very few substitutes, which are available as
produced by this low profit earning. Few substitutes is available on high quality that are more
expensive. Buyers have less likely to switch substitute items focusing on differentiating the
products. Entertainment will continue as the social event with book club, which has substitute
such as watching television, rent movies, playing computers, listening, tapes, radio and video
games, playing computers, surfing on internet, and exercising.
Bargaining power of customers
The book industry appearing to react the counter cyclically to economy. Customers spend the
disposable income as the source of entertainment and more expensive as durable goods.
Trend amongst the teenager and adults to read the books have been growing.
Bargaining power of suppliers
Supplier power in the bookstore industry can be considered as moderate. Retailers can buy
books, which starts from 1700 publishers and wholesale distributors. Publishers have high
control over the distribution, which includes listing price and retail cost price. The limitation
affords the publishers controlling the supplier power over the book retailers (Lopes, Lopes,

Coleta, and Rodrigues, 2019). Some publisher rely on distribution channels and marketing of
retailers with an aim to sell the books. The purpose of purchasing volume of the larger book
such as advantage in discussing with the suppliers (Meng, and Rebreyend, 2016).
Rivalry amongst the competitors
The competitors for Booksloverparadise are few at offline platforms. Furthermore, few online
competitors have greater share in market. This indicates they engage in competitive actions to
become leaders. As a local competitor, the company faces competition from online
bookstores such as Booktopia, Dymocks, QBD books, Abbey`s bookshop, Angus &
Robertson (Aydin, 2017). These stores offer millions of items through third party seller
offering a range of books, which includes entire section dedicated to titled print in the foreign
languages. On the other hand, Angus & Robertson, eBay, and Amazon Australia has brand
reputation as effective Australia`s favourite store. This makes the industry, which needs
increase the capacity by the large increments. This conducts the industry pronging to
disruption in supply demand balance (Aydin, 2017).
Threat of entrants
The economies of scale is difficult where Booksloverparadise operates. This indicates that
producing larger capacities can have cost advantage. Threat of new entrants is weaker
because product differentiation is quite different as compared to standardised items. On the
same side, the capital need in the industry is high creating difficulty for new entrants
weakening the industry (Amoako, and Baah, 2020).
Lessons to learn from Amazon bookstore
To attain competitive advantage, it is seen that the Booksloverparadise must grab the online
opportunities and use social media for the marketing (Driscoll, Fletcher, Wilkins, and Carter,
2018). To attain maximum competitive advantage, the company must come up with product

differentiation and cost leadership (Pingo, and Narayan, 2019). Same as Amazon,
booksloverparadise can extend its range to offer customers such as educational books,
marketing books, blue ocean strategies books, and other useful online PDF books. To stay
competitive, Amazon have attained competitive advantage amongst customers, which
compare different suppliers with a set of factors (Roos, 2019). Booksloverparadise can
consider factors and customer purchase criteria (CPC), which includes reliable services, fast
delivery, and price. Booksloverparadise must grab the little exposure to the online purchasing
so that they will not face issue as “Fear of unknown.”
Booksloverparadise can adopt the strategy of Amazon bookstore so that it can also attain
value proposition, which is to provide more value to the customers with the combination of
extraordinary instant access, comprehensive selection, and convenience to the customers in
building competitive advantage (Amoako, and Baah, 2020).
Disruptive technology
The company must decide foremost value proposition, which can provide both lower price
and value. The company can also launch subscription dealings as Amazon so that interest
customer can buy subscription as per their interest (Lopes, Lopes, Coleta, and Rodrigues,
2019). For example- Booksloverparadise can come up with different criteria for membership
subscription for range of books such as children books, travel escapes, home, gardening,
cookbooks, health, and fitness. Furthermore, the company can apply discounts such as 20
percent off if purchased two criteria of books (Rauch, 2019).
Conclusion
From the above discussion, it is seen that the company can definitely convert its zone of
danger in profitability to high sales by following strategies. A competitor Borders bookstore
will partner with the Starbucks so that it can provide comfortable sitting and effective counter

staff to give services to customers. Border`s Group has been selling products and other
entertainment media where the shopping experience is different from online purchasing,
small scaled independent sources, and single media retailers. After analysing the
performance, the report has evaluated basic data and success of Amazon bookstore.
Technology disruption can definitely benefit the Bookstore to increase its sales through both
online as well as offline method. By opting some of the strategies same as the Amazon
bookstore and local book retailers to attain competitive advantage.

References
Amoako, G.K. and Dartey-Baah, K., 2020. Corporate Social Responsibility: Strategy for
Boosting Brand Perception and Competitive Advantage. In CSR and Socially Responsible
Investing Strategies in Transitioning and Emerging Economies (pp. 65-78). IGI Global.
AYDIN, O.T., 2017. Assessing the environmental conditions of higher education: in a
theoretical approach using porter’s five forces model. Journal of Higher Education and
Science, 7(2), pp.378-391.
Cheshire, A., 2019. Action Plan for the Development of a South Australian Seaweed
Industry. In Harnessing Marine Macroalgae for Industrial Purposes in an Australian
Context: Emerging Research and Opportunities (pp. 180-200). IGI Global.
Driscoll, B., Fletcher, L., Wilkins, K. and Carter, D., 2018. The publishing ecosystems of
contemporary australian genre fiction. Creative Industries Journal, 11(2), pp.203-221.
Finder, 2019. TOP SITES TO BUY BOOKS ONLINE. Available on:
https://www.finder.com.au/buy-books-online-australia [Accessed on: 28/03/2020]
Lopes, S.C.P., Lopes, H.E.G., Coleta, K.G. and Rodrigues, V.C., 2019. Dynamic Business
Model: Capture of value and generation of sustainable competitive advantage. In Handbook
of Research on Business Models in Modern Competitive Scenarios (pp. 99-116). IGI Global.
Meng, X. and Rebreyend, P., 2016. On transforming a road network database to a graph for
localization purpose. International Journal of Web Services Research (IJWSR), 13(2), pp.46-55.
Pingo, Z. and Narayan, B., 2019. Big Data and the Internet of Things: Current Industry
Practices and Their Implications for Consumer Privacy and Privacy Literacy. In Handbook of
Research on Big Data and the IoT (pp. 55-76). IGI Global.

Rauch, S., 2019. Procedure to sustain competitive advantage in an era of changing dominant
design. Procedia CIRP, 81, pp.838-843.
Roos, G. and Cheshire, A., 2019. Absolute and Comparative Advantages of South Australia
in the Macroalgal Value Chain. In Harnessing Marine Macroalgae for Industrial Purposes in
an Australian Context: Emerging Research and Opportunities (pp. 146-170). IGI Global.
Roos, G., 2019. Basis for Competitive Advantage in the Different Application Domains.
In Harnessing Marine Macroalgae for Industrial Purposes in an Australian Context:
Emerging Research and Opportunities (pp. 110-145). IGI Global.
Verma, A., 2018. The competitive dynamics of MNE market entry on host country
incumbents: word/action responses to Amazon’s retail entry into the Australian retail
sector (Doctoral dissertation, Auckland University of Technology).