Marketing Plan for Redbox Essay

Redbox is a DVD/Blu-Ray letting partnership which utilizes kiosk machines placed in convenient, high-traffic locations. The world-class Redbox kiosk was opened by McDonalds in 2002. Redbox was later purchased by Coinstar, Inc. , and over the years, Redbox has rented over peerless billion movies and has grown to more than 27,000 locations in restaurants, grocery stores, pharmacies and convenience stores nationwide. Redbox proves to be a very unique way to rent DVDs and by the nature of Redboxs letting process, most businesses would benefit from the increase traffic generated by having a kiosk machine at their location.This face of relationship proves to be a win-win situation for both Redbox and the businesses which atomic number 18 house the kiosk machine. Redboxs primary tar postulate market proves to be the busy, I dont have time to visit Blockbuster or login to Netflix type of consumer. There kiosk machines are locate in vulgar shopping locations which lend themselves to the lazy consumer. Furthermore, Redbox is also targeting the casual movie security guard who isnt necessarily intending on renting a movie.In a way Redbox has turned renting movies into an impulse item. As a result, Redbox provides consumers with a service never seen before and has emerged as one of the elephantinest DVD renting chains in the world. Redboxs merchandising mix is simple, unique, and clever. They have successfully turned a shopping item into a convenience item. generation have changed since the first movie rental store, Magnetic Video, was opened during 1977 in Los Angeles, California.During that time home personal computers were barely seen and the internet was nowhere on the horizon, so movie rental stores with good customer service provided the consumer with fel starting timeship about the movies they were interested in. However, in todays fast moving, teaching crazed world, consumers move obtain better information on the flee with there Blackberry, iPhone, or any other(a) internet ready hand-held device. Obviously Redbox recognized that consumers generally already know what movies they want to ascertain and they do not need to visit a movie rental location to get these hot new DVD releases.Not plainly does Redbox provide a unique service, they provide it at a low equal at convenient locations. Most movie rental stores shudder $4-5 to rent a new release for approximately 3 days, whereas Redbox provides a similar service for $1. 29 per night. This is extremely cheap considering most consumers stay their movie rental the same day they rent it. Furthermore, Redbox gets this low cost movie rental product to the consumer through a channel of diffusion historically associated with snack foods and soda.By providing movie rentals through vend machines called kiosks located at shopping locations where consumers already go to shop, they have eliminated much of the be associated with conventional movie rental stores and the need for co nsumers to make an additional split up just to rent a movie. Since Redboxs inception, it has experienced enormous harvest-time and profit, provided they will need to evolve in order to get ahead of the curve. Although Redbox appears to have established themselves as a formidable rival to Netflix and Blockbuster, they are facing a gruesome reality.The take-home movie rental business is rapidly losing ground to online streaming video directly to consumers homes via the internet. Netflix has already been providing this service for quite some time and both Redbox and Blockbuster are feeling the pres confident(predicate). Blockbuster, Inc. has already declared bankruptcy and very well whitethorn close conventional brick and mortar locations entirely. Redbox will need to change their marketing strategy significantly in order to stay competitive. The industry is ever-changing and Redbox will need to seriously consider providing a viable online streaming video service which can rival N etflix.I propose Redbox should quit all efforts in providing any more kiosk machines so they may focus most of their resources to providing the consumers with what they want, online streaming video. Netflix has already got a head start, but even they will not be an exclusive online service for a few more years. So, Redbox must follow the money if they plan to be in business in the next five years. On the other hand, Redbox also has a golden opportunity to gain a large market share in the gaming industry. Redbox needs to become the first and still company to offer video game rentals through vending machines.Redbox is poised to achieve this goal with little to no effort and with their only possible competitor in this area being Blockbuster, they are sure to make huge profits from go this service. Redbox already has the distribution convey in place all they need to do is make a smooth transition from offering DVDs in the kiosks to offering games. This should be a tiered transition which coincides with their streaming video efforts. In other words, Redbox cannot simply remove DVDs from the kiosks and replace them with games immediately.As Redbox begins to provide consumers with a reliable, concrete streaming video service at a competitive price, they can slowly remove DVDs from kiosks and replace them with the hottest new video games on the market. In conclusion, Redbox is currently providing a service which is in its decline stage and they need to consider changing their product mix in order to get ahead of the curve. They can accomplish this by providing consumers with an online streaming video service and becoming a pioneer in the gaming industry. Get Your Game on with Redbox