Redbox Essay example
Redbox Automated Retail LLC was started in 2002. It started out being an experiment, funded by McDonalds, with grocery style kiosks and DVD rental kiosks. Within the first year Redbox dropped the grocery side and capitalized fully on the automated DVD vending machine rental. In 2009, Redbox became a fully owned subsidiary of Coinstar.
A strategic evaluation of Redbox’s internal strengths, weaknesses, opportunities and potential threats are the bases of this marketing plan. While Redbox exhibits non-traditional marketing venues, they have proved to be successful marketing channels. A strong focus is put upon Redbox in contracting with Verizon for the implementation of streaming movies, maintaining the low price for …show more content…
6. Sociocultural forces. Today’s fast-paced society allows for less leisure time. Consumers are looking for convenience and easy to use products. Redbox offers a convenient service that allows renters to be able to rent-and-return anywhere at any kiosk. Customers can also reserve a movie online or via mobile apps and pick up at the nearest Redbox location (4).
B. Target Market(s)
Redbox has three main target market segments, the casual viewer, the family viewer, and the non-web savvy person. For first target market segment, Redbox markets towards the casual viewer. They have a policy of no monthly contract fees unlike their competitor, Netflix, who enforces a monthly fee. The casual viewer doesn’t rent enough movies or games to justify the fee. The casual viewer appreciates the ease and convenience of the locations of the Redbox. While Blockbuster also targets the casual viewer, Redbox is more appealing due to the inexpensive cost to rent a movie.
The second target segment is the family viewer. Redbox positions itself in convenient locations for the ease of renting for the busy mom or dad. They can stop off at the grocery store or gas station on the way home from work and also pick up entertainment for…