Kobo eReader Segmentation
COMPANY ANALYSIS: KOBO
June 15, 2013
A. COMPANY BACKGROUND
History
Kobo was founded in 2009 and 58% owned by Indigo Books and Music. The first Kobo eReader was sold in 2010 (Euromonitor, 2012, p 1).
The company was sold in 2012 to Rakuten Inc, the largest e-commerce company in Japan. Kobo’s headquarters are in Toronto, ON (Euromonitor, 2012, p 1).
Kobo not only manufacturers their own brand of eReaders, but has also developed tablets and applications for the ipad and android platforms (Euromonitor, 2012, p 1). Kobo was named by using an anagram for the word ‘book’ (Creative Keys, 2013).
Size and Growth
Kobo currently has 14.5 million registered users (Globe and Mail, 2013, para 2). While most of these users are based in Canada, it is estimated that 15% are based in the United States (kobocafe, 2013, “Kobo’s bet to double down”).
Kobo estimates that it has 45% share of the Canadian eReader market (Kozlowski, 2013, para 1) and 20% of the global eReader market (Hoffelder, 2013, para 2), (kobocafe, 2013, “Kobo brings the joy of ereading”). It is estimated that Kobo is responsible for close to 50% of digital ebook sales in Canada and close to 20% in other markets (kobocafe, 2013, “Kobo’s bet to double down”).
The eReader market is estimated to be worth $250 billion globally (kobocafe, 2013, “Kobo’s bet to double down”). Kobo sales have been estimated at $93 million in 2011 (PrivCo, 2013). Kobo sales have been growing rapidly in the past year. Kobo reports that their Q1 2013 sales are up 145% vs. the same time period in 2012 (kobocafe, 2013, “Kobo’s bet to double down”).
B. SEGMENTATION CHART
The following chart outlines two customer segments for the Kobo eReader:
Parental Educators
Passionate Readers
Demographic
• 35-50 years of age
• Married with young children
• High level of education
• Medium to high income
• Male or female
• 50- 65 years of age
• Married or widowed
• Working or retired
• High level of
June 15, 2013
A. COMPANY BACKGROUND
History
Kobo was founded in 2009 and 58% owned by Indigo Books and Music. The first Kobo eReader was sold in 2010 (Euromonitor, 2012, p 1).
The company was sold in 2012 to Rakuten Inc, the largest e-commerce company in Japan. Kobo’s headquarters are in Toronto, ON (Euromonitor, 2012, p 1).
Kobo not only manufacturers their own brand of eReaders, but has also developed tablets and applications for the ipad and android platforms (Euromonitor, 2012, p 1). Kobo was named by using an anagram for the word ‘book’ (Creative Keys, 2013).
Size and Growth
Kobo currently has 14.5 million registered users (Globe and Mail, 2013, para 2). While most of these users are based in Canada, it is estimated that 15% are based in the United States (kobocafe, 2013, “Kobo’s bet to double down”).
Kobo estimates that it has 45% share of the Canadian eReader market (Kozlowski, 2013, para 1) and 20% of the global eReader market (Hoffelder, 2013, para 2), (kobocafe, 2013, “Kobo brings the joy of ereading”). It is estimated that Kobo is responsible for close to 50% of digital ebook sales in Canada and close to 20% in other markets (kobocafe, 2013, “Kobo’s bet to double down”).
The eReader market is estimated to be worth $250 billion globally (kobocafe, 2013, “Kobo’s bet to double down”). Kobo sales have been estimated at $93 million in 2011 (PrivCo, 2013). Kobo sales have been growing rapidly in the past year. Kobo reports that their Q1 2013 sales are up 145% vs. the same time period in 2012 (kobocafe, 2013, “Kobo’s bet to double down”).
B. SEGMENTATION CHART
The following chart outlines two customer segments for the Kobo eReader:
Parental Educators
Passionate Readers
Demographic
• 35-50 years of age
• Married with young children
• High level of education
• Medium to high income
• Male or female
• 50- 65 years of age
• Married or widowed
• Working or retired
• High level of