red box brand audit
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TRANSCRIPT
![Page 1: Red Box Brand Audit](https://reader033.vdocument.in/reader033/viewer/2022050815/548c19a1b4795966778b45f1/html5/thumbnails/1.jpg)
Shelby Gagnon
Jennifer Walker
Bryan Zembruski
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Agenda
Brand Elements & Growth
Consumers & Competition
Equity & Position
What’s in the Future
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Price & Convenience.
Non-Committal Service.
Red Kiosk: 630 DVDs/200 Titles.
Order Online.
iPhone App Locations.
Promo Codes.
Brand Elements & Attributes
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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
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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
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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
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DVD Rental Market
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Kiosks Rising Share
Video rental kiosks on track to make up nearly 30 percent of the U.S. video rental market in 2010
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Major Competitors
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Points of Purchase
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Points of Parity
Free trial
Convenience
Order Online
Smartphone apps
Move toward video games/streaming
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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
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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
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• 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.]
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On-the-go entertainment seeker. Follow Movie Trends. Online savvy. Open to new media. Deal seeker. Early Adapter. Moderately brand loyal.
Consumer Base
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Partnerships & Cross Promotion
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Promo Deals
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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
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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...”
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Position Map (Jennifer)
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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
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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
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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
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Customer Based Brand Equity Pyramid
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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
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Brand Errors
Initial convenience store vending machines.
Slogan Failures“Never a late fee ever”
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Recommendations
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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.
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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.
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Proposal: Brand Extension (all)
RedPhonePrepaid cell phone kiosks
RedAirMy Sky RedboxI Fly Redbox
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