...Executive Summary Currently, Redbox does not have a mission or vision statement out for the public. This is a problem since the mission and vision statements are an important aspect of a company. However, in their 2010 annual report, I did find out that one of the goals of Redbox is to be able to achieve satisfactory availability rates to meet consumer demand while also maximizing Redbox’s margins. Nonetheless, Redbox should provide its customers and the public with mission and vision statements. My recommended mission statement can be found in Exhibit 1. Redbox has been successful renting DVDs ”on-the-go”, however, just like the convenience drove customers to Redbox kiosks, new technology can drive them away. The upsurge of online streaming seems to be the new “thing”. In order to combat this problem Redbox needs to develop a streaming business that can compete with the likes of Netflix, Apple and other rivals (Redbox rivals can be found in Exhibit 2). If Redbox can accomplish this task, it will give Redbox further growth expansions providing them with a competitive advantage. Situation Synopsis (extended SWOT) A quick SWOT Analysis lays out Redbox’s standing: Strengths Weaknesses Cheap Rental Prices $1.20+tax Limited only to New DVD Releases More clients because of No membership fees Maintaining physical stock Various Locations Poor advertising 1st of its kind Limited functionality of machines Offers free DVD promotion rental 28-day delay of new...
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...Redbox – Marketing Plan U.S.A Esther Orosz, Wiebe Poelmann, Shu K, Martin Gerzmann 2/15/2011 Redbox – Marketing Plan 1 CONTENTS 2011 1 Contents ......................................................................................................................................................................1 2 Executive Summary ....................................................................................................................................................3 3 Introduction ................................................................................................................................................................3 4 Problem Statement ......................................................................................................................................................4 5 External Analysis ........................................................................................................................................................4 5.1 Marketing Segmentation .....................................................................................................................................4 5.1.1 Geographic Segmentation ............................................................................................................................4 5.1.2 Demographic Segmentation .........................................................................................................................4 5.1.3 Pshychographic...
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...Statement – Overall Redbox has been happy with their success. However the problem is that there is a gradual shift to digital media, away from DVD’s and Redbox must be ready with innovative changes. Currently they do not have an online interface or platform where users can stream movies directly. Redbox also has a very limited amount of movies per Kios (200). If customers wanted movies that were from the 1990’s or 1980’s, it was harder for them to obtain. In a way, Redbox was limited in terms of their range. Also due to their contractual agreements with Universal Studio, Warner Bors, 20th Century Fox, etc., they had to sell their movie only 30 to 45 days after the release of the movie. Redbox is able to keep track of the number of each title in each kiosk; however, when a title is completely unavailable at a kiosk, the company hires field staff to move movies around and fill in empty slots; which seems a little inefficient and an unnecessary cost. The biggest expense Redbox incurs is content acquisition and licensing agreement. The company spends hundreds of millions of dollars on license agreements with each movie studio. Therefore the question to be asked is “How to reduce the company’s content acquisition cost?” Summary of Facts – Redbox is leading the way in the premier industry of DVD rental kiosks. With Coinstar as its established parent company, Redbox is currently surpassing its competitors with its number of self-service kiosks. “At the time of the...
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...closely fit the competitive approach that Redbox is taking? Defend your answer. The chief elements in Redbox’s strategy are: a. Attracting customers with low prices and convenience. Charging customers $1 dollar per day as a rental fee is very attractive to users and the firm. It is attractive to customers because their nightly entertainment is very cheap in comparison to other alternatives. It is beneficial to Redbox because in the event that the customer forgets to return the movie, they are charged double the rental amount which doubles revenues instantly. b. Rapidly increase the number of shopping locations with a Redbox kiosk. Most Redbox locations are between the cash registers and front entrance of the store much like Coinstar. They have recently added locations outside the stores to replicate soda machines and newspaper stands. This provides customers with convenient locations to rent and return their movies. c. Create a recognizable brand name. Redbox has created a recognizable brand name by using bright red and white colors for their kiosk. By using red, Redbox locations stand out and are easily recognizable to customers. d. Make the machine easy to use. By making the machine easy to use, customers are able to browse through movies using touch screen technology quickly. They are also able to purchase movies and replaceable cases. Customers’ time at the kiosk is even quicker when there are two kiosk and/or the customers already knows what movie...
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...Introduction……………………………………………………………………........1 Industry Overview………………………………………………………………2-8 Client Profile & Competitor Analysis……………………………………9-17 Comparative Analysis……………………………………………………….18-19 Consumer Analysis………………………………………………………….20-23 Consumer Insights………………………………………………………….24-29 Survey…………………………………………………………………………….30-31 Results……………………………………………………………………………32-41 Recommendations…………………………………………………………..42-45 Appendix I……………………………………………………………………..46-48 Appendix II………………………………………………………………….…49-55 References………………………………………………………………………56-57 Will Haven, Lucy Ross, Jessica Stephens, Lauren West & Bonnie Willard Redbox is leading the way in the premier industry of DVD rental kiosks. With Coinstar as its established parent company, redbox is currently surpassing its competitors with its number of self-service kiosks. Redbox’s growing popularity is facilitated by its physical distribution, which places the kiosk in high traffic locations such as WalMart, Kroger, McDonalds and Walgreens. Due to redbox’s standing as the progressive option for DVD rental, its decision to target the 18-24 year old demographic was evident. This demographic embodies the idea of innovation, experimentation, and dependency on technology, all of which are imperative to transform an introductory product into a nationwide brand. The following report provides secondary and primary research in order to construct an accurate glimpse of redbox and its emergent status within the 18-24 year old target market of the DVD rental industry...
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...Integrated Company Analysis December Integrated Company Analysis15, 2010 December, 15 2010 Scott Meyer Scott Meyer Angela Faloye Anjali Krishnan Nathan Schaff Matt Reuer Scott Meyer 26 Table of Contents Introduction .............................................................................................................................................................. 3 Executive Summary ................................................................................................................................................. 3 Marketing Analysis ............................................................................................................................................. 3 - 7 Competitive Analysis and Positioning ................................................................................................................... 3 Target Segments ..................................................................................................................................................... 4 Product ................................................................................................................................................................... 5 Price ....................................................................................................................................................................... 5 Marketing Communications ...............................................................................
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...Competition in the Movie Rental Industry: Netflix and Redbox EXECUTIVE SUMMARY This analysis will cover the movie rental industry and providing recommendations to Redbox and Netflix. Movie rental industry is rapidly changing much of the once dominant force in movie rental Blockbuster is slowly shifting to the now increasing power house Netflix for most consumers’ movie rental choice. The recommendations for Netflix in order to maintain its dominance in the field is to maintain its low cost in subscription, increase its video library, collaborate with Television providers to incorporate Netflix directly into the Televisions. Recommendations for Redbox is to maintain its kiosk location, but also move into internet streaming where they provide newer movies for its same one dollar fee. ANALYSIS Netflix, Redbox and Competitors Netflix is the world’s largest subscriptions service for streaming of online movies and TV episodes as well as sending DVD’s through mail. Redbox has over 22,000 kiosk locations within the continental United States and United Kingdom with DVD rentals and the cost of one dollar a day to its customers. New Entrants Ease of entrance is a main factor in the strength of both Redbox and Netflix, in the number of competitors, now with mostly online video streaming you only need computers, software and servers and distribution rights to enter the market. With more companies and competition Netflix and Redbox do not have to fight over customers. Buyer...
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...flaws with video streaming making it less desirable despite heightened convenience. In regards to price, Netflix rental system requires a monthly subscription for $9.00 which includes unlimited downloads for that period. While ourage frugal Netflix offers a different approach customers, it promotes a more loyal customer than redbox and Blockbuster Express with its base. in-home streaming of movies. Netflix streaming has the advantage of being 19 | Page Movie Renters In the past few years, researchers have studied the spending habits of DVD rental users. In general, Americans who rent movies more often are more likely to see films within the first two weeks of release (37). Simmons went on to report that from those who watch movies in the first two weeks, they will then rent from Blockbuster, Hollywood Video, and Netflix (37). Redbox, in particular, has been steadily increasing its amount of rentals. Its target market, according to NPD...
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... Analysis of Redbox University of Saint Mary Cairo Team November 9, 2012 Redbox Coinstar, Inc., through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom. The company owns and operates self-service Redbox kiosks that allow customers to rent or purchase movies and video games; and self-service coin-counting kiosks where consumers can convert their coin to cash, a gift card, or an E-certificate. Coinstar, Redbox's parent company, is led by a savvy management team. By maximizing the value of Redbox and investing in new technologies it is the best way to capture opportunities along with various dimensions such as new customer segments, geographic, product segments, and strategic moves. Coinstar has built a promising future by taking their kiosk-based business to a new level. Strategic investment, position and new technology lead the way to the competitive advantage in the movie rental industry. The Redbox Company is a subsidiary of Coinstar Inc.; it is a kiosk run retailer which provides movie rentals to consumers at an inexpensive rate. Redbox Automated Retail LLC began operations in 2004 with funding provided by McDonald's Ventures, a subsidiary of McDonald's Corporation. The initial Redbox vending machines were placed in a number of McDonald's fast-food restaurants. (Thompson, Peteraf & et al, 2012) As of December 31, 2011, the company had 35,400 Redbox kiosks...
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...American company that was founded in 1991 and is headquartered in Bellevue, Washington. Redbox is an Automated Retail, LLC, and is a leading vendor of rental DVDs through automated kiosks. It is a wholly owned subsidiary of Coinstar, Inc. Redbox has kiosks active in more than 14,000 locations in North America; Redbox has served more than 40 million customers. Redbox continues to change the DVD rental industry with kiosks located in the nation’s leading grocery stores, convenience stores, discount stores, and other locations nationwide. Redbox got its start with the launch of its DVD rental kiosks in McDonald’s locations in Denver, CO, Minneapolis, MN, and Houston, TX. Redbox needed a solution that was able to increase DVD capacity over existing machines as well as improve overall product functionality for kiosks located primarily at McDonald’s restaurants. Redbox who was faced with an advertising campaign deadline revamped their machines, which in the beginning included groceries. They realized that the DVD’s were doing better than the food and revamped their machines to focus on this source only. Redbox specializes in the rental of DVDs, Blu-ray Discs, and video games via automated retail kiosks. Some of the key people in the roles of Redbox are Anne Saunders, President of Redbox, J Mitch Lowe, former President, Gregg Kaplan, Founder and CEO of Redbox. After the merger the Coinstar / Redbox key people are founders Jens Molbak, and Dan Gerrity. Other key people are Paul...
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...SUBJ: A Look at the Competition Within the Movie Rental Industry EXECUTIVE SUMMARY: Analysis: The competitive forces in the movie rental industry are quite strong, as I will explain through the five forces model. There are a vast amount of substitutes for watching a movie. You can go to a play, sporting event, concert, out the lake/beach, go for a run, watch regular television, go shopping; I could go on and on. Also, torrenting or pirating movies is growing increasingly popular. Buyers have a strong presence in this industry mainly because they are picky about how much they will pay to rent or stream a movie. With the amount of substitutes and their pickiness, they make this industry more competitive than what it may seem. Suppliers can make this industry very difficult because there is so much red tape in the movie industry. There are copyrights and restrictions on everything. This gives the supplier a lot of leverage and for the most part, they know that they can demand a price of just about anything. I see the potential and threat of new entrants being moderate to strong. First off; many customers have their loyalties whether it be to Netflix, Redbox or a local hometown movie rental. Secondly; pricing, availability and quality are all key factors. Lastly you have to have a large sum of money upfront in order to get the ball rolling. As I mentioned prior, gaining rights from movie companies is not cheap. The rivalry among the competitors is rather intense as they...
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...the fore front in the current dynamic world, then an organization should adopt the various application of information technology. This will put the organization at the forefront in terms of innovation as well as give the organization a competitive advantage (Hitt & Robert, 2011, p.10). Value chain analysis is a model that was developed by Michael Porter to help an organization develop a strategy for its organization. Michael porter suggested that organization activities can be grouped into two major categories which include the following; primary and support activities. Primary activities are those activities that are geared towards the creation and delivering of a product. Examples of primary activities include component assembly (Schmitz, 2005, p.20). Support activities on the other hand are not directly related to the production of a product or service. Such activities are those activities that can increase the efficiency or effectiveness within a business. For example, human resource management is an example of support activities. This essay is going to evaluate the process of value chain analysis and its application in the following two companies; Netflix and Redbox companies. 2.0 Background information. Netflix is an online movie streaming and email DVD Company. The company offers consumers a chance to stream live various movies over the internet. In order to use Netflix, consumers are required to register on the company’s website. The registration will involve...
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...Moreover, GameStop publishes a critically acclaimed monthly, Game Informer, a magazine that covers the entire gaming industry. This marketing plan presents the results of our situational, marketing and financing analysis and presents the strategies to be employed to implement a new product offering - a video and computer game rental kiosk, referred to as the GameStop Box. | | 7/29/2011 | Table of Contents 1.0 Executive Summary 3 2.0 Situation Analysis 4 2.1 Mission 4 2.2 Product or Service Description 4 2.3 Value Proposition 5 2.4 SWOT 5 2.5 Critical Issues 6 3.0 Market Analysis 7 3.1 Macro Environment 7 3.2 Market Size and Growth 8 3.3 Market Trends 8 3.4 Target Market Analysis 9 3.5 Customer/Consumer Analysis 9 3.6 Needs Analysis 9 3.7 Competitive Analysis 10 3.7.1 Direct Competitors 10 3.7.2 Indirect Competition 11 4.0 STRATEGY 11 4.1 MARKETING OBJECTIVES 11 4.2 FINANCIAL OBJECTIVES 12 4.3 SEGMENTS AND TARGET SEGMENTS WITH NEEDS OUTLINED 12 4.4 POSITIONING STRATEGY 12 4.5 PRODUCT STRATEGY 13 4.6 PRICING STRATEGY 13 4.7 Distribution Strategy (Direct and Indirect) 13 4.8 Intergrated Marketing communications strategy 13 4.9 branding 13 4.10 Market research 13 5.0 Financial Analysis 14 5.1 Break-even Analysis 14 5.2 Sales Forecast 15 5.2 Expense Forecast 17 6.0 IMPLEMENTATION AND CONTROL 18 6.1 IMPLEMENTATION 18 6.2 CONTROLS 18 6.3 MARKETING...
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...Team B - Business Failure Analysis Jeffery Rhymes, Terri Zubrod, Abel Dominguez, Eric Paniagua, Su Rodriguez LDR/531 January 11, 2015 Professor David Warren Introduction The mission statement for Redbox and Blockbuster both have focused on providing customer satisfaction with media entertainment that includes movies and games. In the years prior to the inception of Redbox in 2002, Blockbuster offered customers a value price entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience (Poggi, 2010). Blockbuster Inc. was a global business with 8,000 stores and offered movie and game rentals for home use by consumers (Poggi, 2010). Since 1992, Outerwall LLC had looking for ways to provide value, convenience and simplicity to consumers and retailers with the kiosk brands best known, Coinstar a leader in money services and Redbox, the best value in home entertainment. Outerwall LLC has a network of more than 66,000 kiosks and will be re-imagining new retail solutions to fit everyday consumer needs for the present and the future (Outerwall.com, 2015). Blockbuster – Success and Failure Blockbuster’s vision Statement: "At Blockbuster, diversity means valuing differences. It's a corporate value that must be continually developed, embraced and incorporated into the way we do business" (Poggi, 2010). Blockbuster was a video rental store that started in Dallas, Texas the first store was opened in October, 1985 and the...
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...Netflix Domestic Strategy Prepared for: Netflix Senior Management Reed Hastings, Co-Founder and CEO Kelly Bennett, Chief Marketing Officer Jonathan Friedland, Chief Communications Officer Bill Holmes, Chief Business Development Officer Neil Hunt, Chief Product Officer David Hyman, General Counsel Patty McCord, Chief Talent Officer Ted Sarandos, Chief Content Officer David Wells, Chief Financial Officer August 4, 2012 Through this report, our consulting team has taken the opportunity to analyze and provide recommendations for future domestic business strategy of Netflix. As expressed in the company’s founder’s conference last October, we would like to help you build upon your stated vision for the future including: • Becoming the best global entertainment distribution service • Licensing entertainment content around the world • Creating markets that are accessible to film makers • Helping content creators around the world to find a global audience We would also like to follow the nine values you use to guide your company: • Judgment • Productivity • Creativity • Intelligence • Honesty • Communication • Selflessness • Reliability • Passion In this report, we will address the following issues to provide a foundation for overcoming Netflix’s domestic challenges: I. Competitive Dynamics A. Key Competitors B. Competitive Response II. Strategic Management/Competitive Issues A. Key Strategic Issues B. Strategic...
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