Price & Convenience: $1 – per – day rental. Rent at one location, return at another. Non-Committal Service Red Kiosk Each with 630 DVDs representing 200 titles Order online at redbox.com Use iPhone app to find nearest location Proven Technology Unmatched production timeline No big deal if you change your plans or don’t like the movie it’s just a $1. (99 cent menu value)
Customer Acquisition. Please customers. Growing Distribution. Powerful marketing partnerships. Low overhead. Direct Connection via mobile & e-mail: 1.7m text message customers growing by 100,000/month 20m customer email addresses
Blu-ray will lead sales 2011 and beyond. No overseas expansion, focus remains in the US
Video rental kiosks on track to make up nearly 30 percent of the U.S. video rental market in 2010 Through the first half of 2009, the share of rental turns (i.e., the number of videos rented by consumers) reached 19 percent for video kiosks like Redbox, compared to 36 percent for Netflix and other subscription services, and 45 percent for Blockbuster and other traditional brick–and-mortar video stores.
Amazon Instant Video On Demand Blockbuster Blockbuster Express (kiosk) Blockbuster Online Comcast On Demand Netflix Xbox - extension of Netflix The New Release (aka MovieCube) DVDXpress DVDplay Gamefly Hulu.com
Redbox Young, innovative, fun, affordable Blockbuster Dynasty A leading brand caught off guard Did not optimize brand for business extensions Netflix Well known brand becoming stale Comcast On Demand Brand extension void of its own personality
Demographics Gender evenly split (49%/51%) Ages 18-34 & 35-49 account for 70% of customers 76% are Caucasian Half have children at home (55%) Even income distribution (30-60k, 60-100k, 100k+) Half have graduated college [Based on demographics of Redbox customers also online]
Busy, on the go, movie entertainment seeker. Like to be up to date on the latest, greatest. Perceive convenience broadly? Online savvy. Open to new media (Facebook, Twitter, blogging). Deal seeker propensity & appreciate a good deal. More apt to try new things. May be more difficult to maintain as customers. No commitment with Redbox, open to trying new things, and seek deals.
Shelby Gagnon Jennifer Walker Bryan Zembruski
Agenda Brand Elements & Growth Consumers & Competition Equity & Position What’s in the Future
Big red kiosk, Identifiable Fun, Exciting, Innovative, Happy, Entertaining DVD & Blue-ray Top new releases Kids videos Always in stock Free Rental Codes Facebook Freebies Text Codes Groupon deal
Easy to use
Convenient Many locations 7-Eleven, grocery store Rent & return anywhere Rent with errands $1 Great Value No late fees Credit card Email Receipt/Confirmation Big red kiosk Identifiable Brightly lit up Video Games for multiple consoles Easy to use Self-service Quick service
Short-term: Identify slogan. What’s in your Box?; Look/Delve inside the box? What’s playing on your TV tonight? (Simplify)
Gain 8.7% within the last year; match mkt share this year.
Increase awareness goals. New partnerships like Papa Murphy’s, Little Cesar’s, Pizza Hut/Dominos; Target gamers online – “Try it Before You Buy It” link to where gamers go ie World of War Craft. Target Stores.
Long-term: in order to acquire new customers launch an advertising and marketing campaign ONLINE with the launch
of streaming online videos.
Future: Global expansion. Extend ad marketing campaign after test markets, focus groups, etc consider to move beyond WOM. Consider research cost ROI TV show offerings online and or at kiosks.