In 1951, Phillip and Pamela Joseph opened a small bookstore in the middle of Hillbrow. Fifty years
Question:
In 1951, Phillip and Pamela Joseph opened a small bookstore in the middle of Hillbrow. Fifty years later, this little shop has grown into a nationwide chain of 40 stories, employing 1 200 people and stocking between 50 000 to 10 000 titles. Its reputation has grown, and Exclusive Books has become known as the country's foremost bookseller. The first Exclusive Books store soon became known for its intimate atmosphere and ability to anticipate customer's reading needs. More than just selling books, the shop offered a cultural experience. Its popularity grew to the extent that large premises were required only three years after it first opened its doors. In 1957, Exclusive Books became one of the very first shops in South Africa to open for trading hours at night, over weekends and public holidays. This was a popular move which changed the face of bookselling in South Africa.
In1973,ExclusiveBooksmovedtoPretoriaStreetinHillbrow.Theshopsoonestablisheditself as a Mecca for book enthusiasts. The innovative architectural and interior design of the bookshop set the trend for all future Exclusive Books outlets. The shop's revolutionary and refined,tranquilatmospheremadeitfavouriteplaceforbookenthusiaststolinger,especially since it was one of the first shops to offer late trading. Even today, the relaxed atmosphere of Exclusive Books is believed to play a primary role in attracting and keeping people in the store.
The 1970s was the era of Hector Petersen and the Soweto uprisings, of detentions without trials and political bans. Exclusive Books embraced the defiant ethos of the time. The shop was known to sell reading material unavailable anywhere else and thus became the darling of the liberal set, frequented by activists and gangsters. However, in 1976, the owners of ExclusiveBooksemigrated,sellingthebusinesstoThePremierGroup.Itwasalsoin1976that thefirstExclusivebooksbranchwasopenedinCapeTown.Between1976and1994,sixshops were added to thechain.
The1980ssawaperiodofrapidgrowth,highlightedbytheopeningin1986oftheHydePark branches. In 1994, the Hyde Park branch was revamped and at nearly 1 000m2 became the biggest general bookshop in the southern hemisphere - a status which it still enjoys today. A further revamp was completed in June 1999 which increased the floor space to 1 100m2. In 1998,fivemoreshopswereacquiredafterFactsandFiction,aGauteng-based chain,merged with Exclusive Books. The chain then enjoyed an estimated market share of 35% with group sales of approximately R250 million. At the end of 1999 Exclusive Books had 18 outlets, including 2 new outlets that were opened at the Johannesburg International (in the international departure area) and Cape Town airports. In April 2006, Exclusive Books had 39 stores in South Africa and a store in Gaborone, Botswana. Johannesburg alone has twelve branches. The branch in Sandton Square (specializing in business books) is a very impressive store with beautiful dcor and a coffee shop. This is also the branch in the chain that offers the most titles, although smaller than Hyde Park branch in terms of floor spaceoccupied.
Exclusive Books (a member of the Johnnic Communications Group) through advertising and strategic repositioning, has re-established a 55-year-old bookstore company as a cutting edge, leading national brand. During 2002-2004 Exclusive Books achieved and sustained 20- 30% year-on-year growth in books sales, becoming the second largest contributor to Johnnic Communications Retail's revenues and a dominant market player. Due to popularity and demandExclusiveBookshasdoubledinsizeandextendedtherangeandselectionofitstitles. Withsomethingforeveryone,onewillnothaveanyproblemfindingsomethingofinterestor of relevance to one's interests. Exclusive Books was rated the best book retailer in South Africa during Book retailing in South Africa is dominated by three booksellers: the bookshop chain Exclusive Books with 401 substantial specialist bookshops; the media chain CNA with about350outlets;andtheBMAbookclubsLeserskingandLeisureBooks.Thisconcentration in the retail industry where almost 70% of the market is shared among the three top companies works to the advantage of multi-national publishers who can make titles it allows forrelativelyeffectivelow-costentrybysmalllocalpublishersifthetitlesareacceptedbyone of the three leading booksellers. These leading booksellers are generally sensitive to the needs of publishing including small local publishers, yet the main requirementfor.
The chain's earlier dedication to providing a cultural experience has not changed. People still visit Exclusive Books as much to browse as to buy. In 1999 Exclusive Books reinvented their brand identity creating a younger friendlier and accessible image. As part of this strategy, Seattle Coffee cafes have been introduced to 14 of the stores. This joint venture has made Exclusive Books a kind of 'cultural playground'. It was also around this time that the chain's loyalty programme Fanatics was launched to further stimulate sales. Exclusive Books ensure that the staff they hire have a very good knowledge of books and a passion for reading.
In2003,withthehelpofOgilvy&Mather,ExclusiveBooksmanagedtosuccessfullyreposition theirbrand,ensuringthatthenewimageencouragedSouthAfricanstobuymorebooks.The campaign aimed to broaden the relationship with Fanaticsmembers.
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QuestionTwo (45Marks)
Evaluate how competitive forces in the industry have shaped Exclusive Books' strategy.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr