Market entry for a new market with a low e-reading penetration rate
Rakuten Kobo - E Reading
OVERVIEW
When Rakuten Kobo, an e-reading platform, first entered the Taiwanese market, e-books accounted for only 6% of the entire reading market. As a consultant for my client and their go-to-market project, I led the development of a customer segmentation and value-based segment tiering analysis, which resulted in a comprehensive market entry plan including product launch prioritization and marketing plans for different customer groups.
Our go-to-market strategy was a huge success, laying the foundation for consumer behavior changes and helping my client achieve 160% year-over-year revenue growth. Today, Rakuten Kobo is not only the largest e-reading player in Taiwan, but also one of the biggest players in the entire reading market with a 15% market share.
MY ROLE
Consultant (responsible for the client project end to end from research/analysis to strategizing & reporting)
RESEARCH METHODS
Survey and consumer reading data analytics (segmentation)
Secondary research (competitive analysis & market trends)
In-depth interviews (deep understanding of targeted consumer segment)
Digital ethnography (targeted consumer segment)
THE TEAM
IN HOUSE: Creative, Design, Strategy Planner, Social Planner, PR
CLIENT: Product, Marketing, Data Engineering
01 The Goal
Establish a go-to-market plan to increase Rakuten Kobo's customer base in Taiwan
In 2016, Rakuten Kobo, a major e-reading service provider, ventured into Taiwan. This move was challenging as the market had minimal adoption of e-books in people's reading routines. Consequently, our client faced difficulties initiating their business. As per the National Central Library File, by Q2 2017, the e-book market share remained below 6% in the broader book market. Hence, our team was brought on board with Rakuten Kobo in Q3 2017 to expand their customer base.
02 The Process
Understand the consumers and market to make data-informed decisions
03 Research Insights
The overall reading market is declining
Through secondary research from reports, I discovered a continual decline in the Taiwan market over the past five years leading up to 2017. This decline was influenced by various factors, including the emergence of digital trends, a shift in preferences towards alternative entertainment options, and alterations in reading behaviors. Insights from publisher and book retailer data revealed a struggle in consumer book sales, highlighting a crucial takeaway for Rakuten Kobo: expanding within the existing reading consumer base might not be the most effective strategy due to the diminishing size of the reading consumer market.
Consumer book sales data in Taiwan from 2012 to 2017
The digital trend is strong. The majority of consumers have long digital screen time but limited dedicated read time
Utilizing survey data and consumer digital analytics, I conducted customer segmentation by analyzing consumers' digital engagement and their allocated time for reading (inclusive of digital content). The segmentation analysis revealed four primary consumer segments: the social savants, the go-getters, the absolute bookworms, and the thirsty cravers. Predominantly, the social savants segment encompasses the largest portion of consumers based on their behavioral patterns and preferences.
Key painpoints shared by Social Savants and Go-Getters coincide with E-Reading offerings
According to survey analysis, Social Savants and Go-Getters primarily comprise white-collar professionals aged between 25 and 49, holding at least a bachelor's degree, and residing in major urban cities.
Through in-depth interviews and digital ethnographic studies, I was able to identify top pain points for Social Savants and Go-getters in regards to reading:
PAINPOINT 1
Financial Stress
As a result of the substantial cost of living and comparatively low incomes in Taiwan, young adults experience stress in meeting financial demands, leading them to inadvertently de-emphasize spending on reading materials.
What Kobo E-reading has to offer: Typically, E-books are priced 15 to 20% lower than physical books due to savings on printing expenses.
PAINPOINT 2
Fear of Missing out on Info
and Less Patient
Impacted by the digital media trend, consumers possess reduced patience and experience anxiety regarding potential missed opportunities for instant access to information or knowledge. Consumer fear of missing out on being "up to date".
What Kobo E-reading has to offer: Free from logistical constraints, E-books enable readers to obtain and indulge in reading material at any place and time they desire.
PAINPOINT 3
Limited living spaces
As most social savants and go-getters reside in urban areas across Taiwan, their accommodations tend to be temporary (rented) and space-limited. Consequently, they opt against purchasing physical books due to the lack of storage space in their living environment.
What Kobo E-reading has to offer: Ebooks are paperless and do not require physical storage spaces.
PAINPOINT 4
Consious of social perspection
Influenced by traditional Asian culture, Taiwanese individuals tend to be highly mindful of societal perceptions and often exhibit introverted tendencies. Therefore, many consumers are concerned about reading in public where their reading preferences are on "public display".
What Kobo E-reading has to offer: Without the overt display of a physical book cover, E-books offer a reading experience that provides enhanced privacy and personal boundaries.
The Opportunity Gap
Utilize Kobo's e-reading product offerings and market strategies to broaden the overall reading market, specifically targeting light readers — social savants and go-getters. Bridge the gap between their pain points and current reading offerings with Kobo’s E-reading solutions.
04 Market Entry Plan
Launch Kobo E-reading platform to acquire early adoptors -- digital savvy light readers
P0: Introduce the Kobo e-reading platform that allows customers to purchase e-reading materials through their current devices, aligning with existing user habits to capitalize on the opportunity gap.
P1: Launch the Kobo reading device to accommodate the expanding reading habits of users and to broaden the customer base to include readers with light to moderate reading habits.
Develop compelling messages and channels tailored to address the pain points of the target audience, with the goal of raising awareness about e-reading and encouraging customer engagement
05 The Result
Full funnel evaluation for performance review
160% year-over-year revenue growth
15k new customers in 1 month
10.24% market share by 2017
20% organic search growth
3M+ views
200k+ social engagements