...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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...Distribution Strategy Report Redbox Abstract Redbox was conceived and started in 2002 by the McDonald’s corporation. In the beginning McDonalds placed 12 kiosks to test the market and customer interest in the concept. The initial kiosks offered food vending items and DVD rentals. Today Redbox has over 24,900 kiosks placed throughout the United States. The distribution strategy that McDonalds used was Direct Channel strategy and Single Channel strategy. As the concept continued to be successful, McDonalds continued to use Direct Channel strategy and also started using the Multiple Channel Stategy. In 2005 Coinstar purchased 47.3% of Redbox. When you think of McDonalds, a person usually thinks of fast food like hamburgers and their signature French fries. But in 2002 McDonalds wanted to find a new way to bring more customer traffic to their restaurants, while also being able to provide convenience to their customers. McDonalds introduced kiosks machine where a customer could get select needed or wanted items. The original kiosks included items like sandwiches, eggs and milk, while also offering DVD rentals. McDonalds choose this direct and single channel distribution strategy to test the market. Direct channel distribution strategy is defined as ‘selling products to end users through independent intermediaries such as wholesalers, distributors, retailers and or agents’. (Gordon, 2013) The single channel distribution strategy, is defined as “utilizing only...
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...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. This report includes the description and results of eighty self-administered surveys completed by samples of the target market. Based on an analysis of these results, the report concludes with recommendations designed to assist redbox in more effectively reaching its 18-24 year old target market. 1|Page Industry Size: Revenue & Product...
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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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...The company I have chosen to do the external environment scan is Redbox. Redbox is in the movie rental business via self service kiosks. Redbox is wholly owned subsidiary of Coinstar Inc. Laws and Regulations: There are some specific laws and regulations under which the movie rental business like Redbox should operate. But due to the growing popularity of renting videos through mail, online and kiosks, most of these laws will probably have to change or modified to fit the new way of people renting and watching movies. Age of Renters – This law for who can rent specific videos follow the same guidelines set by Motion Picture Association of America. These guidelines are based on their content, language, sexuality, violence and themes. Privacy Laws – This law protects the video rental records of individuals as the records can be damaging to a person’s reputation and they cannot be disclosed without written consent. Public exhibition – Videos and DVDs are not allowed to be publicly exhibited outsides of a persons home unless for non profit use or educational purposes without a license. Federal Copyright Act – This law governs how copyrighted materials can be used and distributed. The movie studios who own copyrights are the only parties who are authorized to license sites to display movies for protection of their intellectual properties. Antitrust laws – these laws promote or maintain market competition by regulating anti-competitive conduct by prohibiting...
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...2013 Executive Summary: Problem 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...
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...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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...movie rental needs has suffered a significant loss in revenue to the rise of RedBox and Netflix. The competitive advantage offered by the two companies has tapped into Blockbuster’s market and cause a lack of blockbuster for the company. Since 2009 the company has continue to reported decreased revenue and profits against its competitors. In 2010 the company filed bankruptcy and has since then implemented new services and products similar to its competitors, however, customer’s still prefer RedBox and/or Netflix. Once upon a time on a Friday night after work, you were looking to go home, relax, and watch a good movie. You come up on a big blue sign with yellow lettering, and think, “I’LL RUN TO BLOCKBUSTER!” Today, we’re looking for the nearest RedBox, or browsing Netflix for a good flick. There was time when families would take a trip to Blockbuster, order a pizza, and make it a movie night. Today, people have the luxury of not even leaving the house to find a good movie; thanks to Netflix. After a routine run to Wal-Mart, Walgreens, or Kroger’s it has become second nature to browse the RedBox, especially since the cost is only $1. But what has happened to good ol’ Blockbuster? Over the past few years Blockbuster video locations have steadily declined. Blockbuster, the once powerful source for movie and video game rental, has become nonexistent in some areas. Due to the rise of Netflix and RedBox, Blockbuster has experienced a decline in sales, continues to close locations...
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...1. What are the chief elements of Redbox’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most 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...
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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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...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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...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 in 29...
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...anywhere with an internet access point and a viewing device, to stream as many movies or videos as they like. Netflix has negotiated terms with networks managing titles to either receive a profit of each title or a cut from subscription fees. How strong are the competitive forces in the movie rental marketplace? Do a fiveforces analysis to support your answer. The competitive forces in the movie rental marketplace are not very strong. Netflix’s major competitor is actually just RedBox. Most people would think Blockbuster Express kiosks would be a serious competitor, but actually Blockbuster Express (not related to Blockbuster LLC or Blockbuster stores) is operated by RedBox. According to NPD Group, a market research company, overall disc rentals was down in 2011, but it still managed be the top source of movie media in homes with 62 percent of transactions being disc transactions. At its peak, Blockbuster had operated approximately 9,000 stores, they are now operating approximately 900 stores worldwide. RedBox, a recent competitor, operates approximately 42,000 kiosks. Netflix runs their disc rental program a little bit differently. Although they do not have physical locations for customers to peruse, instead their selections are online based and selections arrive by U.S. Postal Service next day or two days depending on the customer’s location. As mentioned previously, the disc rental industry is slowly declining. The rise of renting streaming movies is on...
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...Article Review #1 2/16/12 Article Summary I am currently a Netflix subscriber and was very interested by an article in the Los Angeles Times on 2/7/12 about Verizon and Redbox teaming up to start a similar but “improved service”. I also am somewhat impatient and enjoy being able to jump in the car and grab a movie instead of the waiting two days to receive it in the mail. In the article they discuss the pros and cons of Verizon and Redbox joining this business and how it will affect Netflix; and what Netflix counter will be to stay on top in the field. Netflix sees its DVD delivery service as “dying”, they have made it clear they are not investing anymore money in the service but they will now focus more on streaming. Streaming is extremely convenient and user friendly! The article does not go into the greatness of steaming but makes it very clear that Netflix is 100% correct in their focuses for the future. Netflix can be watched on multiple gaming devices, smart phone and of course laptops too and that makes it more marketable. They also have rights to certain movies that others trying to get involved in the field will not be able to use; this makes it hard for their competitors. They offer more than 10,000 movies and series though their streaming service alone. Netflix can be streamed internationally. Redbox’s parent company Coinstar Inc. has teamed up with Verizon; both companies have a large presence in each of their own areas of business and will...
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...strategy offered several flat-rate monthly subscription options; in which, members could stream movies and shows via the Internet or have disks sent to their homes in a pre-paid and pre-addressed envelope. Free from the despair of due dates and late fees, members could keep, up to, eight movies at a time. Upon the return of a disk, Netflix would automatically mail out the next movie from the customer’s video queue. Members were able to change and update their queues as frequently as they liked. The sheer innovation of Netflix’s strategy encouraged several competitors to enter the market to compete directly, forced existing competitors, such as Blockbuster, to extend their services to include mail delivery, and inspired the very creation of Redbox. Regardless of all the competition, if Netflix can remain on the cutting edge of their craft, by continuously offering the latest releases and the most far-fetched options; they should be able to maintain their competitive advantage, because they offer a valuable, reliable service at a consistent price. 2. Reed Hastings’ strategic change and rapid reversal affected Netflix’s fourteen million customers in several ways. First, the company launched a streaming-only plan for $7.99 per month in November 2010, and increased the cost of each DVD plan by $1. Customers interested in both services, were able to sign up for the streaming plan and add DVDs for $2. Netflix was incorrect in their assumption that most users would drop their mail...
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