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Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
Redbox in Australia
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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

    • 1. automated dvd rental<br />Kristy DumlaoJordan NelsonHilary LaBrashJennifer Noinaj<br />1<br />
    • 2. Agenda<br />Project Description<br />Cultural Analysis<br />Economic Analysis<br />Competitive Market Analysis<br />Marketing Plan<br />Conclusions<br />2<br />
    • 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. How to Rent<br />4<br />
    • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Communication<br />Telephone (21 million)<br />Mail<br />90% access to internet<br />Increasing usage of web 2.0 applications<br />
    • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Recommendations<br />Pricing strategy<br />Better movie selection<br />Longer rentals<br />Strong market<br />More locations<br />34<br />
    • 35. 35<br />Questions?<br />

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