Winning Sales Strategies: Driving Sales, Boosting Profits (9-11 August 2011)
David Shanks final compressed · 2020-07-24 · Our shape Pearson Sales: $7,096m Profits: $758m...
Transcript of David Shanks final compressed · 2020-07-24 · Our shape Pearson Sales: $7,096m Profits: $758m...
Lehman BrothersLehman Brothers
David ShanksDavid ShanksCEO, Penguin Group (US)CEO, Penguin Group (US)
15 June 200515 June 2005
Our shape
PearsonSales: $7,096mProfits: $758m
Penguin GroupSales: $1,509mProfits: $100m
School29%
Higher Education20%
FT Group16%
Professional14%
Penguin21%
UK & RoW40%
US60%
2004 results under IFRS translated at year end rate of £1: $1.92
The US consumer publishing market
By publisher By category
Harper Collins8%
Random House17%
PenguinPenguinPenguinPenguin11%11%11%11%
Simon & Schuster8%Time
Warner6%
Holzbrinck4%
Other 46%
Source: Nielsen Bookscan, AAP
Hardcover 31%
Tradepaperback 22%
Massmarket
20%
Youngreaders
18%
Other 9%
A US publishing powerhouse
Strength of brand and backlist
#1 imprint in US
• Breadth of publishing
• A leader in every major English languagebook market
• Part of the world’s largest book company
The world’s leading book companyBook revenues, $m
Source: 2004 resultsNote: 2004 FY average £1:$1.83; €1:$1.25.
1,276
1,283
1,588
2,097
2,230
2,396
4,114
Reed(Harcourt)
NewsCorp(HarperCollins)
Scholastic
Bertelsmann
McGraw-Hill
PearsonPearsonPearsonPearson
Houghton Mifflin
US gross sales by format, 2004
Source: AAP/ Penguin
Young readers
Mass market
Adult hardcover
Trade paperback
Other
18%16%
20% 33%
22% 21%
30%
9%
31%
Industry PenguinUS
Adult hardcover 30%
Trade paperback 21%
Emergence of multi-million bestsellers
2.2m 3.7m 7.2m
Emergence of multi-million bestsellers
2.2m 3.7m 7.2m
Mass market33%
Consumer attitudes to mass market
• 60% of readers over 50 have not bought a book because of legibility
• 82% of readers prefer new premium format to traditional mass market
• 70% of readers over 50 would spend $2 more on new format
Source: BzzAgent Marketing survey of 6800 readers, 2005
The premium paperback
The premium paperback
The premium paperback
Young readers
16%
Young readers
16%
Our priorities
• Balancing our investment
• Innovation in formats / channels
• Further cost savings
• Efficiency gains with Pearson Education
• Publishing success
Hot Shots
Our outlook
Patricia Cornwell
Photograph by Peter Ross
Our outlook
Our outlook