Tag Archives: shopping

Membership Programs: Barnes & Noble

Most of us have a number of memberships and subscriptions. We have Amazon Prime, Walmart+, Netflix, Disney+, ESPN+, Apple, Spotify, and more. We might also have subscription food services plans as well. It just seems like every business is working on a subscription or membership, trying to capture that elusive recurring revenue stream – and of course lock us in to its services to the exclusion of other services.

When will it end? Well, it certainly won’t be ending soon. In fact, more and more services, memberships, and subscriptions are offered every day.

Barnes & Noble has entered the fray as it continues to compete with Amazon and its very popular Amazon Prime program. Of course Barnes & Noble’s membership is focused around book sales only (mostly). The company is now offering a $40-per-year membership program that offers customers 10% discounts, free shipping, a yearly tote bag, and size upgrades on drinks.

If the $39.99 program is too pricey, the company has also launched a lower-tier membership program – for free. That program rewards customers with virtual stamps for every $10 spent; 10 stamps equals a $5 credit towards purchase.

The big benefit to Barnes & Noble is to learn more about its customers so that it can provide more products and services to them. If companies learn what we are buying, marketing programs can be tailored to each the consumers more effectively. Barnes & Noble can incent specific purchases using new information gained from the memberships.

What memberships do you have?

Group Activities and Discussion Questions:

  1. Discuss membership programs. Include subscriptions in the discussion.
  2. Poll students – how many memberships or subscriptions do they have? What is the monthly/yearly cost in total?
  3. Show Barnes & Noble website for membership program: https://www.barnesandnoble.com/membership/
  4. Discuss the various promotional tactics that can be used for launching a new service or product.
  5. Have students come up with tactics and list all the tactics on the white board (ex: billboards, print, direct mail, etc.).
  6. Divide students into groups to work on this exercise.
  7. For Barnes & Noble Premium Membership, have each team select three different tactics to use for promotion. For each tactic, explain why it was selected and how it will be used.
  8. Debrief by putting together the entire suggested lists on the white board. As a final step, have the entire class vote on the top three tactics to use.

Source:  Trachtenberg, J. (17 February 2023). Barnes & Noble takes page from Amazon with $40-a-year membership program. New York Times.

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Who Smells?

Most of your students are probably in their late teens or early twenties. They can surely remember how it felt to go through puberty and all the physical changes it wrought in them. Using ‘adult’ products may have felt too old and stodgy, but the ‘youth’ products may not have fit all the needs too.

Deodorant is one of those tricky products to choose as youths turn into adults. Deodorant is used daily by 90% of Americans aged 18 – 29. That’s a lot of product and it comes at a time when the younger consumer is trying on different products and personalities to fit their needs.

Entering the tween/teen market with a fresh approach is Miles, a deodorant designed specifically for teens. The products were designed to help ease the stress of being a teen and uses inclusive branding for all teens, regardless of gender, expectations, or activities. While legacy deodorant brands represent a more traditional view of manhood, Gen Z views themselves with more focus on individuality. Key words for the product are clean, rugged, and fresh – quickly conveying the scents and brand focus.

Only sold online currently, Miles is sold at $8.99/unit. It will also be available this spring at Target stores.

What does your deodorant smell like?

Group Activities and Discussion Questions:

  1. Show Miles’ website: https://hey-miles.com/
  2. Discuss the importance of clearly defining a target market.
  3. In the case of Miles, is the buyer the same as the product user? What are the differences between the two groups?
  4. Divide students into teams and have each team develop a profile of a target market for Miles. Include demographics, psychographics, behaviors, values, attitudes, etc.
  5. Based on the target market profile, what makes this product unique for these customers?
  6. Next, have each team select three different tactics to use for Miles. Explain why each tactic was selected and how it will be used.
  7. Debrief by putting together the entire suggested lists on the white board. As a final step, have the entire class vote on the top three tactics to use.

Source:  Norfleet, N. (24 February 2023) Sweet smell of success? Deodorant line hopes so. Minneapolis Star Tribune.

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Electric Bikes Take Off

The pandemic created a great deal of pain and turmoil for people as they worried about health and jobs. And, people made a lot of adjustments in their daily lives during, and now after, the pandemic. There have been supply chain disruptions in all industries, making it hard to get inventory to the customer.

Despite all the strain, one of the positive impacts in the past two years has been the uptick in sales of electric-bikes. In 2021, more than 880,000 e-bikes were sold, far surpassing the units sold of electric cars and trucks (at 608,000). Industry experts predict that more than one million e-bikes will be sold in the U.S. in 2022.

And why not. E-bikes are easy to use and greatly increase the speed of regular bike trips. No more huffing and puffing up a hill, only to arrive sweaty at a destination. And instead of driving, the e-cargo bikes can make the trip and haul groceries as well as the kids. Finally, let’s not forget about rising gas prices! (The more expensive gas gets, the better my e-bike looks.)

Many new e-bike firms are taking to the road by selling only online. However, buying online has one big flaw – the inability to touch and test the product before buying. There are plenty of testimonials and videos, but nothing beats actually experiencing an e-bike.

One solution from Belgian e-bike company Cowboy, is to take the bikes to the prospective customer. In ten cities in the U.S., prospects can request Cowboy ‘ambassadors’ to bring the bikes to them for a trial ride. A similar approach is being used by Rad Power Bikes. In addition to several stores, pop-up events and test rides bring the e-bikes to more places. Pedego e-bikes uses a different model and has more than 200 distributors where riders can try the e-bikes before they buy.

Ready to ride?

Group Activities and Discussion Questions:

  1. Poll students: Have they ridden electric bikes? Where and how?
  2. View Cowboy bikes: https://us.cowboy.com/
  3. View Rad Power bikes: https://www.radpowerbikes.com/
  4. View Pedego bikes: https://pedegoelectricbikes.com/
  5. In order to be successful, companies must be able to physically get a product into the hands of the customers. Discuss how a distribution channel works.
  6. For Internet-based e-bike companies, what distribution channels are used now?
  7. How can the channel be expanded? What approach could be used?
  8. Divide students into teams. Have each team draw a flow chart for the distribution of the product.

Sources:  Boudway, I. (18 April 2022). E-bike online startup lets you ride before you buy.  Bloomberg News.; Hurford, M. (27 April 2022). New research shows that e-bikes are outpacing electric car sales in the U.S. Bicycling.com.

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