1. Borders Group C Andrew Roth Cyndi Hilsabeck Jeff Primos

2. 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

3. 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.

4. 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

5. Product is King Core products include books, text books, eReaders, movies, music, calendars, posters, and crafts. To differentiate itself Border’s launched BordersMedia.com

6. 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

7. 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.

8. 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”

9. 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.

10. SERVICE Borders.com offers a full customer care area.

11. 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.

12. 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

13. 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.

14. Tactic one cont. Social Media used in campaign Facebook Main author’s page and promotion of events Twitter Live tweets by author YouTube 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.

16. Application created by Borders that allows for an author to self publish a book within the Borders community

17. Contains all the tools necessary for creation, publication, social media promotion and price control.

18. Additional costs for additional features.

19. Objectives

20. Creation of community within emerging authors at Borders

21. New niche for Borders

22. Social Media platforms used

23. Facebook

24. Twitter

25. Author’s pages tied in but Borders has authority to control

28. Application created by Borders that allows for greater customization of Borders Facebook page by adding “Borders Community”

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

30. Promotions and coupons for interest specific material

31. Objectives

32. Creation of community with customer specific categories of interest.

33. Promotions and coupons targeted to customers with specific interests.

34. Social Media platforms used

35. FacebookCreation of an app that sits on top of Facebook Optional download

36. 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.

37. 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.

38. Questions Thank you for your time Questions?