Adobe International Discount Sales
Low Introductory Prices Encourage Lifelong Users Worldwide
Jun 9, 2008
Adobe Systems Incorporated has increased sales of its advanced yet easy-to-use designer and developer software tools by 250%, from US$1.3 billion in 2000 to $3.2 billion for its latest fiscal year ending on November 1, 2007.
Despite a slowing global economy, Adobe management recently confirmed projected revenue growth of 19% for the second quarter ending on May 31, 2008.
Adobe is now one of the world’s largest software companies. The company benefits from sales of its strong suite of hardcopy document design tools, Web production applications, and rich Internet communication resources in wealthy and fast-growing global markets. Adobe software tools like single-source desktop publishing solution Framemaker, popular animated movie maker Flash and the world's leading Web production application Dreamweaver continue to leverage off of the explosion in the number of computer devices around the globe that enable users to communicate via the Internet.
Adobe International Sales by Region
Below is a list that summarizes regions where the multinational software giant generated its revenues for fiscal 2007. Percentage growth increases are also shown.
- Americas … US$1.5 billion (up 19% from 2006; up 229% from 2000)
- Europe, Middle East and Africa … $1.03 billion (up 33%; up 318%)
- Asia … $623 million (up 21%; up 219%).
Americas include the United States, Canada, Latin America and Central America. The Americas region represents 48% of overall Adobe revenues. Europe, Middle East and Africa (EMEA) generate 32% of total company sales while Asia accounts for 20%.
Adobe’s EMEA sales are growing the fastest, due in part to the fact of the need for customers from a large number of countries in the European Union and in Africa to use Adobe products to share information across borders with other people in their region.
Adobe Discount Prices in Canada
Strategic price discounts are key to growing Adobe’s global sales.
In Canada, Adobe offers price savings of more than 80% to targeted audience groups like students. For example, Design Premium CS3 bundle is offered to full-time, part-time and even continuing education students for C$345. That’s a savings of $1454 or 81% less than the regular retail bundle price of $1799.
Design Premium CS3 bundle includes fully featured versions of Adobe InDesign, Photoshop Extended, Acrobat 8 Professional, Flash Professional, website building Dreamweaver plus 5 specialized shared applications and services from Adobe.
Adobe strategically markets its products at loss-leading prices to Canadian students for two major reasons. The specialized software maker:
- Aims to capture a cohort of loyal, lifelong customers early when they are young and at school
- Regularly updates all of its leading software packages with new and improved features, and sell product version upgrades to its existing clients. For example, users will be able to embed video files into PDF files with the newest version of Adobe Acrobat.
Adobe Discount Prices in China
Adobe also uses international price discounting to fight the problem of illegal counterfeiting of its original software particularly in China.
Because international trade authorities have little power to control zipped file attachments on emails, copies of original Adobe software files are often electronically smuggled into China via the Internet.
Therefore, Adobe sells its products in the People’s Republic and other highly populated countries in Asia for 20% of the regular retail price.
Adobe would much rather build a loyal community of Chinese customers for legitimate software copies of its products even if it means selling at a heavily discounted price. To an American multinational like Adobe, lowering prices as a way to accelerate new and repeat sales to millions of young and wealthy professionals makes far more business sense than trying to enforce international trade laws on counterfeiting in a foreign land.
Adobe’s Global Customers
Adobe customers transcend international trade boundaries that limit exports and imports of traditional merchandise products including commodities by country or trade region. Adobe software clients include anyone who has ever read an Acrobat PDF file or watched an online Flash movie via universally available, free player software.
Adobe Audience Segments
Specific audience segments which use Adobe products include:
- Teams of knowledge workers who share and collaborate on high-value information
- Application developers and Original Equipment Manufacturer (OEM) partners such as mobile device manufacturers, printer manufacturers, Internet service providers and developers
- Creative professionals like graphic designers, Web designers, videographers, photographers and professional publishers
- Enterprise users like information systems managers, line of business managers and executives
- High-end consumers like digital imaging and digital video hobbyists and enthusiasts.
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