Shelby Gagnon

Jennifer Walker

Bryan Zembruski

Agenda

Brand Elements & Growth

Consumers & Competition

Equity & Position

What’s in the Future

Price & Convenience.

Non-Committal Service.

Red Kiosk: 630 DVDs/200 Titles.

Order Online.

iPhone App Locations.

Promo Codes.

Brand Elements & Attributes

 

1. Customer Acquisition. Please customers.

2. Growing Distribution. Powerful marketing partnerships. Low overhead.

Direct Connection via mobile & e-mail:1. 1.7M Text Message.2. 20M Email Addresses.3. Customer Growth 100,000/month.

Brand Elements & Attributes

Big red kiosk, Identifiable

Fun, Exciting, Innovative,

Happy, Entertaining

DVD & Blue-rayTop new releases

Kids videosAlways in stock

Free Rental Codes

Facebook Freebies

Text CodesGroupon deal

Easy to use•No

employees

ConvenientMany locations7-Eleven, grocery

storeRent & return

anywhereRent with errands

$1Great ValueNo late feesCredit card

Email Receipt/Confirmat

ion

Big red kiosk IdentifiableBrightly lit up

Video Gamesfor multiple consoles

Easy to use Self-serviceQuick service

 Timeline:2002 McDonald’s Ventures, LLC 12 kiosks launch to lure in customers2004 1st market test Denver, CO 140 kiosks2005 Coinstar Inc invests with 47% ownership2008 200% Revenue Increase2009 Expanded into Game Rentals to compete with Gamefly2010 HD Blu-Ray Offering

Video Game test markets: NV, TX, WI, OR, NCOnline rental option

2011 Facebook fans growth 30,000 in 2010 to over 1.8millioniPhone app launched 2.5m downloads

2014 DVD rentals expanding at average rate 2.7% to $9.97billion.

Brand Growth

DVD Rental Market

Kiosks Rising Share

Video rental kiosks on track to make up nearly 30 percent of the U.S. video rental market in 2010

Major Competitors

Points of Purchase

Points of Parity

Free trial

Convenience

Order Online

Smartphone apps

Move toward video games/streaming

Points of Difference

Young, Innovative, Fun

$1 Price Point

Well-known Kiosk

Ease of Use

No Commitment

No Account Setup Required

No Human Interaction

Rent & Return Anywhere

High Availability of New Releases

Promotions & Freebies

Dominant Social Media Presence

No Streaming (coming soon)

Limited Titles

Redbox. Young, innovative, fun, affordable.

Blockbuster Dynasty. A leading brand caught off guard. Failed to optimize brand.

Netflix. Well known brand becoming stale.

Comcast On Demand. Brand extension void of its own personality.

Competitor Analysis

• Demographics: 49/51% Gender Evenly Split. Ages 18 - 34 and 35 - 49. 76% Caucasian. 55% Children at Home. Even income distribution

(30-60k, 60-100k, 100k+).

Half college graduates.

Consumer Base

[Based on demographics of Redbox customers also online.]

On-the-go entertainment seeker. Follow Movie Trends. Online savvy. Open to new media. Deal seeker. Early Adapter. Moderately brand loyal.

Consumer Base

Partnerships & Cross Promotion

Promo Deals

Is The Brand Well Positioned?

Redbox has successfully Positioned itself as:

• First to market with rental kiosks• Entered market by way of Blue Ocean Strategy

• Regular Promotions• Movie Mondays • First rental is free• Facebook promotion codes • Redbox Blog membership rental codes

Is The Brand Well Positioned?

Redbox has successfully Positioned itself as:

• A low cost provider of movie/video game rentals• Inexpensive entertainment for the unemployed

• A conveniently located movie/video game rental service• Located at regularly frequented stores

• An impulse rental service• Immediate gratification• "there’s nothing to do tonight, let’s rent a movie...”

Position Map (Jennifer)

Sources of Brand Equity

• Brand Loyalty• Relatively fickle customer base• High level of repeat purchasers

• Brand Awareness• 84% brand awareness• Large Red Point-of-Purchase Kiosks

• Perceived Quality• Low price• Great Customer Service

Sources of Brand EquityContinued

• Brand Associations• Inexpensive• Convenient locations• Fast Rental• Easy to use Kiosk interface• Free Movie Promotions

• Other proprietary Brand Assets• Increased awareness and perceived quality via partnerships with

brands such as:• Pepsi• Orrville Redenbacher• Frito Lay• Mc Donnalds• Monopoly

Customer-Based Brand Equity Pyramid

• Resonance:• Weakest on top because of consumers’ low personal attachment to

the brand and fickle brand loyalty

• Feelings/Imagery:• The Redbox customer-based brand equity pyramid is strongest on

the right side due to the positive feelings associated with the products offered and attention catching imagery of the kiosks

• Judgement/Performance:• Medium strength on the left side because of quality of product,

while good, is on par with most other rental companies

• Salience:• Extremely strong on bottom of the pyramid on account of

consumers’ high level of product recall for the Redbox brand

Customer Based Brand Equity Pyramid

Philanthropy and CSR

• Jacksonville FL (Feel good Movies)• Allows customers to donate their initial $1 rental fee to

one of 10 charities in Northeast Florida and Southeast Georgia

• Coinstar (Parent Company) Donations:• American Red Cross • Feeding America • Leukemia & Lymphoma • The March of Dimes • UNICEF • World Wildlife Fund

Brand Errors

 Initial convenience store vending machines.

Slogan Failures“Never a late fee ever”

Recommendations

Suggestions: Building & Maintaining Equity (all)Maintain the perceived quality of the brand.

Keep $1 price point.

Increase philanthropic activities for the Redbox Brand.

Connect with new consumers through continued partnerships and promotional codes.

Goals

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.Philantrophic

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.

Proposal: Brand Extension (all)

RedPhonePrepaid cell phone kiosks

RedAirMy Sky RedboxI Fly Redbox