1. Wottakar’s The Panda Says “No”
Oliver Bretz 24 November 2006

2. Non-price effects – Do not listen to Economists!
Difficult to predict, difficult to model, difficult to quantify

3. Upstream Price Effects

4. Some non-price effects have price elements:
Reduce number of 3 for 2 offers
Replace all £7.99 titles in the 3 for 2 with £6.99 titles
Replace a good book in a 3 for 2 with a bad book
Reduce size of 3 for 2 table
Move 3 for 2 table to a dark or inaccessible part of the store

5. Other Q factors: Shopping experience (lighting, heating, shop fit-out)
Competent staff
Author signings
Child-friendly environment
Eclectic choice

6. R&D Competition:

7. Development of an Author:

8. Some non-price evidence:
Store refurbishments (“anti-competitor works”) and book signings
Higher proportion of more experienced staff in overlap stores
One publisher spent more than 80% of total marketing spend through specialist retailers
Over 500 titles per year were promoted by Ottaker’s and not Waterstone’s

9. A specific example:

10. Conclusion

11. Wottakar’s The Panda Says “No”
Oliver Bretz 24 November 2006
Clifford Chance, 10 Upper Bank Street, Canary Wharf, London, E14 5JJ, UK
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