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automated dvd rental<br />Kristy DumlaoJordan NelsonHilary LaBrashJennifer Noinaj<br />1<br />
Agenda<br />Project Description<br />Cultural Analysis<br />Economic Analysis<br />Competitive Market Analysis<br />Market...
What is Redbox?<br />Founded 2003<br />17,500+ kiosks in US<br />US$1+tax/night<br />575 million+ rentals<br />Leading gro...
How to Rent<br />4<br />
DVD Kiosk Rentals in the US<br />Coinstar, the owner of RedBox, had “more than doubled its second-quarter revenue from a y...
Facts and Characteristics<br />Official Language: English<br />Political Structure: Parliamentary Democracy, Relatively St...
Cultural Trends<br />Australians are increasingly becoming “time-poor”, they look for more on-the-go options for regular a...
Leisure Activities<br />“Audio-visual” is the fastest growing form of leisure consumption, with Australians spending more ...
Film and DVD Industry<br />Large online DVD rental industry, and online rental sales have increased even though traditiona...
Sales & Players<br />2007: AVSDA acquired AU$211.4 million video sales from the 13.2 million copies sold to rental stores<...
Get ’emwhile they’re red hot!<br />Australian DVD sales and rentals were AU$1.27 billion from 2007-2008<br />Australian DV...
Country Analysis<br />Population: Over 25 Million<br />Leveling population growth<br />Birth rate slowing<br />Population ...
Economic Analysis<br />GDP: US$1,118,112,100<br />Growth rate: 1.9%<br />Expected to slow in future<br />Income per capita...
Resources and Transportation<br />Major Resources<br />Oil<br />Steel<br />Major Modes of Transportation<br />Cars & air t...
Communication<br />Telephone (21 million)<br />Mail<br />90% access to internet<br />Increasing usage of web 2.0 applicati...
Balance of Payments and Exchange Rate<br />Balance of Payments<br />-US$16,985,000 in 2008 <br />Trending upwards<br />Exc...
Trade Analysis & FDI<br />Import Taxes<br />High taxes among corporations<br />Other losses of revenue:<br />Customs<br />...
Labor Force and Inflation<br />Size:<br />10,770,200 (Euromonitor) <br />Growing Demand<br />Unemployment Lowering<br />Un...
redbox in a nutbox<br />Relative Advantage<br />Internet access<br />Compatibility<br />Lifestyle & access to DVD players<...
Who’s the competition?<br />Brick-and-mortar rental stores<br />Online rental websites<br />Self-serving rental kiosks<br ...
In-Store Profile<br />NAMES: Blockbuster, Video Ezy, Civic Video and Network Video<br />LOCATION: all across Australia<br ...
Online Profile<br />NAME: Quickflix<br />LOCATION: Internet<br />AVAILABILITY: whenever you’re online<br />FEATURES: <br /...
Kiosk Profile<br />NAMES: Oovie and RedRoom DVD<br />LOCATIONS: limited areas of Australia<br />Oovie in NSW and VIC (~80)...
More on boxing people in!<br />Distribution of Product<br />Woolworths, Safeway, IGA, BI-LO, Aldi, 7-Eleven and McDonalds....
Red Lights for Redbox in Australia<br />Brand loyalty (Oovie & RedRoom)<br />Credit information<br />Screen Australia<br /...
Marketing Considerations<br />Targeting Objectives<br />Young adults ages 18-24<br />Both genders<br />In college or start...
Product Introductions<br />Pricing AU$2<br />24-hour rental period<br />Machines accessible 24/7<br />Read reviews and wat...
Market Penetration<br />100 machines in Sydney<br />4.4 million people<br />Supermarkets<br />Aldi, Franklins, Ritchies, S...
Distribution<br />iMOZI – Digital media kiosk designs<br />Distribution Agreements<br />Summit Entertainment<br />Lionsgat...
Marketing Communications<br />Internet Advertising<br />CPM very low<br />Penetration to 90% of population<br />Large usag...
Advertising<br />Small Budget<br />Operating margin<br />Similar to the US advertisement<br />Analysis of Media Costs<br /...
Promotions<br />In-store coupons from stores that have Redbox machines<br />Free rental<br />Reduced rental fee: AU$1<br /...
Resource Requirements<br />DVD equipment: 100 machines<br />Kiosk & maintenance (AU$6 million)<br />Maintenance includes l...
Recommendations<br />Pricing strategy<br />Better movie selection<br />Longer rentals<br />Strong market<br />More locatio...
35<br />Questions?<br />
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Redbox in Australia

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  • Australian Visual Software Distributors Association
  • -Australian DVD sales and rentals worth $1.27 billion from 2007-8-and further support that…-titles that did well in film industry expected to help increase australian rental markets….
  • -australians used to this form of payment-leisure sector of consumer spending growing-convenienceThree types of competition
  • -3 major types of DVD rental methods-quickflix:netflixs
  • Store hours are enforced and store not readily accessible late at nightCertain stores online reservationsA few things to highlight about the storesCould not find details on late fee policiesDiscount codes: include free rentals, a reduced rental fee, or a discount for renting numerous DVDs at once obtained through: frequent rental from a user, suggesting friends or family to the rental service, first time signup onto the e-mail list, or signing up through the SMS serviceRental Guarantee where the title is Rent It Now Or Rent It Free; Price Guarantee where the title is at the Cheapest price in Australia or they will match the price a $1 lower; Quality Guarantee where ex-rental DVDs are in quality condition or customers can return it for an exchange.NV: donate cans free weekly rental vouchers
  • Hard to find titlesSit down and browsePay more if exceed membership contract
  • Transcript of "Redbox in Australia"

    1. 1. automated dvd rental<br />Kristy DumlaoJordan NelsonHilary LaBrashJennifer Noinaj<br />1<br />
    2. 2. Agenda<br />Project Description<br />Cultural Analysis<br />Economic Analysis<br />Competitive Market Analysis<br />Marketing Plan<br />Conclusions<br />2<br />
    3. 3. What is Redbox?<br />Founded 2003<br />17,500+ kiosks in US<br />US$1+tax/night<br />575 million+ rentals<br />Leading grocery and convenience stores<br />700 DVDs<br />200 new release titles<br />New movies on Tuesday<br />3<br />
    4. 4. How to Rent<br />4<br />
    5. 5. DVD Kiosk Rentals in the US<br />Coinstar, the owner of RedBox, had “more than doubled its second-quarter revenue from a year earlier after almost doubling its number of kiosks to almost 18,000 and boosting sales per machine by 33%” (Graser, 2009). <br />5<br />
    6. 6. Facts and Characteristics<br />Official Language: English<br />Political Structure: Parliamentary Democracy, Relatively Stable<br />Location: Island between Indian and South Pacific Ocean<br />Historic conflict between British colonists and Aboriginals, also between Great Britain and colonists<br />Major religions: Catholicism and other denominations of Christianity<br />Education: Required through age 15-16, literacy rate of 99%<br />6<br />
    7. 7. Cultural Trends<br />Australians are increasingly becoming “time-poor”, they look for more on-the-go options for regular activities, including meals<br />Young people are getting married later and live alone longer<br />Because of the economic downturn, people are looking for cheaper leisure activities<br />7<br />
    8. 8. Leisure Activities<br />“Audio-visual” is the fastest growing form of leisure consumption, with Australians spending more than half their time on this type of leisure activity<br />Obesity is a growing problem, but many Australians participate in sports to offset this trend<br />8<br />
    9. 9. Film and DVD Industry<br />Large online DVD rental industry, and online rental sales have increased even though traditional retail rental sales have dropped<br />Australians tend to prefer US films, but certain Australian films still find large-scale success<br />9<br />
    10. 10. Sales & Players<br />2007: AVSDA acquired AU$211.4 million video sales from the 13.2 million copies sold to rental stores<br />2007: video rentals generated revenue of AU$522 million <br />4th globally in purchasing DVD players<br />97% households had at least one with average of 1.7 players<br />10<br />
    11. 11. Get ’emwhile they’re red hot!<br />Australian DVD sales and rentals were AU$1.27 billion from 2007-2008<br />Australian DVD rental market brings in about AU$2 billion each year<br />Popular titles in the film industry helped increase Australian rental markets from 2% in 2007-2008 to at least 10% in 2008-2009<br />11<br />
    12. 12. Country Analysis<br />Population: Over 25 Million<br />Leveling population growth<br />Birth rate slowing<br />Population Density<br />93% in urban areas<br />Migration towards urban areas<br />Ethnicities<br />
    13. 13. Economic Analysis<br />GDP: US$1,118,112,100<br />Growth rate: 1.9%<br />Expected to slow in future<br />Income per capita: US$47,071<br />Family income: US$53,002<br />Distribution of Wealth<br />30% making lower than US$20,000/year<br />40% between US$20,000 and US$40,000<br />
    14. 14. Resources and Transportation<br />Major Resources<br />Oil<br />Steel<br />Major Modes of Transportation<br />Cars & air transportation<br />Similar to the United States<br />Major ports at Sydney and Melbourne<br />
    15. 15. Communication<br />Telephone (21 million)<br />Mail<br />90% access to internet<br />Increasing usage of web 2.0 applications<br />
    16. 16. Balance of Payments and Exchange Rate<br />Balance of Payments<br />-US$16,985,000 in 2008 <br />Trending upwards<br />Exchange Rate<br />.79 against the USD<br />Trending upwards<br />
    17. 17. Trade Analysis & FDI<br />Import Taxes<br />High taxes among corporations<br />Other losses of revenue:<br />Customs<br />Licenses<br />No embargos or quotas<br />Tariffs change with quantity and item<br />Must apply for information<br />Foreign investment in growing Industries<br />Housing, Transportation, Leisure and Alcohol<br />Redbox in Leisure industry<br />
    18. 18. Labor Force and Inflation<br />Size:<br />10,770,200 (Euromonitor) <br />Growing Demand<br />Unemployment Lowering<br />Under 5% in 2008<br />Inflation<br />Under 3% for past 5 years<br />
    19. 19. redbox in a nutbox<br />Relative Advantage<br />Internet access<br />Compatibility<br />Lifestyle & access to DVD players<br />Utilizes credit or debit card transactions<br />Leisure sector<br />Complexity<br />Credit or debit card transactions<br />Screen instructions & email address<br />Case<br />Trialability<br />Time & price<br />Observability<br />Word of mouth<br />Foot traffic and utility of retail and grocery stores<br />19<br />
    20. 20. Who’s the competition?<br />Brick-and-mortar rental stores<br />Online rental websites<br />Self-serving rental kiosks<br />Video on demand service<br />20<br />
    21. 21. In-Store Profile<br />NAMES: Blockbuster, Video Ezy, Civic Video and Network Video<br />LOCATION: all across Australia<br />AVAILABILITY: store hours<br />FEATURES: <br />Titles, games, Blu-Ray, browsing, movie cover & synopsis<br />Online reservations<br />ADVERTISEMENTS:<br />Discount codes & prize packs. <br />Civic Video: Terrific Tuesday, disc cleaning, AU$1 Tuesdays, 4 Movie Hires for AU$12, 5 Kid Flicks for AU$5 <br />Network Video: Cands4Films Festival <br />DEALBREAKERS??: <br />Average new releases AU $4.60 & older movies AU $1.60<br />Blockbuster : AU$4.95 -AU$7.95<br />Video Ezy: AU$6 DVDs and AU$7 Blu-Ray Discs <br />Civic Video: AU$4.95 for DVD /Blu-Ray Discs<br />Network Video: varying costs higher than kiosks<br />Late fee policies<br />21<br />
    22. 22. Online Profile<br />NAME: Quickflix<br />LOCATION: Internet<br />AVAILABILITY: whenever you’re online<br />FEATURES: <br />Titles, Blu-Ray, online browsing and request titles <br />No late fees<br />Trailers and reviews<br />ADVERTISEMENTS: <br />Free trial with subscription or rental vouchers as gifts for family and friends<br />DEALBREAKERS??: <br />Wait time for DVDs<br />22<br />
    23. 23. Kiosk Profile<br />NAMES: Oovie and RedRoom DVD<br />LOCATIONS: limited areas of Australia<br />Oovie in NSW and VIC (~80)<br />RedRoom in NSW, QLD and VIC (~85 by end of 2009)<br />supermarkets and shopping malls<br />AVAILABILITY: 24/7<br />FEATURES: <br />new releases, games, touch screen, simple DVD case<br />RedRoom: view pictures, watch trailers, read reviews, multiple kiosks at one location, manned at peak times but closed otherwise and accessible with membership card<br />ADVERTISEMENTS: <br />Discount codes<br />Oovie: 2 for 1 promo code but expires within two days<br />Free Oovie Wednesdays<br />RedRoom: membership cards<br />DEALBREAKERS??: <br />RedRoom: AU$2.95 for SIX hours, sooner return, less it costs<br />InstantDVD: AU$2.99 per day until 7pm the following night<br />23<br />
    24. 24. More on boxing people in!<br />Distribution of Product<br />Woolworths, Safeway, IGA, BI-LO, Aldi, 7-Eleven and McDonalds. <br />Advertising and Promotion<br />television commercials and endorsements, outdoor advertisements, radio excerpts, internet ads, location of machines<br />DVD kiosks discounts for first-timers and loyal users which can be distributed through stores where kiosks located <br />24<br />
    25. 25. Red Lights for Redbox in Australia<br />Brand loyalty (Oovie & RedRoom)<br />Credit information<br />Screen Australia<br />Redbox lawsuits<br />Piracy issue<br />Cost AU$230 million<br />47 million pirated DVDs in circulation while 52 million legitimate DVDs sold<br />2007: conducted 85 raids<br />Internet piracy<br />Australian Federation Against Copyright Theft awareness<br />25<br />
    26. 26. Marketing Considerations<br />Targeting Objectives<br />Young adults ages 18-24<br />Both genders<br />In college or starting new career<br />Marketing Objectives<br />80% awareness of the product with a 75% experience rate<br />Gain 60% retention ratio and create a loyal customer base<br />Positioning Objectives<br />Low pricing strategy: AU$2/night<br />User-friendly and convenient<br />26<br />
    27. 27. Product Introductions<br />Pricing AU$2<br />24-hour rental period<br />Machines accessible 24/7<br />Read reviews and watch trailers<br />DVD recommendations<br />27<br />
    28. 28. Market Penetration<br />100 machines in Sydney<br />4.4 million people<br />Supermarkets<br />Aldi, Franklins, Ritchies, Supabarn<br />Fast food restaurants<br />Chicken Treat, Donut King, Eagle Boys, Oporto, Grill’d<br />Fitness centers<br />Fitness First & Goodlife Health Club<br />28<br />
    29. 29. Distribution<br />iMOZI – Digital media kiosk designs<br />Distribution Agreements<br />Summit Entertainment<br />Lionsgate<br />Sony Pictures Home Entertainment<br />Motion Picture Distribution Association of Australia<br />Australian Visual Software Distributors Association Ltd<br />Additional film distributors<br />Anchor Bay Entertainment, Hopscotch Films, Hoyts Distribution<br />29<br />
    30. 30. Marketing Communications<br />Internet Advertising<br />CPM very low<br />Penetration to 90% of population<br />Large usage by target demographic<br />Guerilla Advertising<br />Receipts<br />Placement in high traffic areas<br />Not using TV or print<br />Easy $2 DVD Rentals. No Late Fees.<br />Rent and Return at many Locations<br />Many locations near you.<br />
    31. 31. Advertising<br />Small Budget<br />Operating margin<br />Similar to the US advertisement<br />Analysis of Media Costs<br />Lower cost for internet<br />Existing partnerships<br />Large TV advertising costs<br />Print advertisement <br />
    32. 32. Promotions<br />In-store coupons from stores that have Redbox machines<br />Free rental<br />Reduced rental fee: AU$1<br />Discount codes: email list & SMS service<br />First-time use: One free rental for signup on e-mail list & on SMS service<br />Repeat use: One free rental after 15 movies or suggesting friends/family<br />Discount for renting numerous DVDs at once: 3 DVDs for AU$5<br />32<br />
    33. 33. Resource Requirements<br />DVD equipment: 100 machines<br />Kiosk & maintenance (AU$6 million)<br />Maintenance includes labor<br />DVDs & casing (AU$2 million)<br />Transportation (AU$2 million)<br />Marketing costs: advertising & promotions (AU$1 million)<br />Break-even: 15 DVDs/day<br />33<br />
    34. 34. Recommendations<br />Pricing strategy<br />Better movie selection<br />Longer rentals<br />Strong market<br />More locations<br />34<br />
    35. 35. 35<br />Questions?<br />
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