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Blockbuster Inc.

Blockbuster Inc. The Marketing Puzzle. The Pieces. Current Business Model Mr. Jeffrey Feiereisen Market Solution Mr. Jared Waks Market Research Mr. David Hahn Blockbuster Delivers Mr. James Burgess. Blockbuster Inc. (Past). CURRENT BUSINESS MODEL. 4 P’s and SWOT.

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Blockbuster Inc.

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  1. Blockbuster Inc. The Marketing Puzzle

  2. The Pieces • Current Business Model • Mr. Jeffrey Feiereisen • Market Solution • Mr. Jared Waks • Market Research • Mr. David Hahn • Blockbuster Delivers • Mr. James Burgess

  3. Blockbuster Inc. (Past) CURRENT BUSINESS MODEL

  4. 4 P’s and SWOT

  5. Product and Placement

  6. Price

  7. Promotion Ad

  8. SWOT Analysis

  9. Blockbuster Inc. (Future) MARKET SOLUTION

  10. Mission Place kiosks in the stores of a fast food delivery chain to facilitate the opening of a new distribution channel for our product: Delivery

  11. Dinner and a Movie Delivery Service Partnership with Dominos 33.7% of the video rental market consumes delivered food while watching rented movies 90.4% of rented movies are watched during dinner hours

  12. Convenience

  13. High Wait Time Nearly 80% of our respondents selected ‘Convenience’ as a main factor in choosing a rental service. High Convenience Low Convenience Low Wait Time

  14. The pizza/movie delivery option is more convenient and faster than either by-mail or retail distribution.

  15. Proposal Papa John’ Pizza = 77 points 24.4% of market preference Domino’s Pizza = 75 points 20.7% of market preference 75.3% would be likely to order from an establishment that delivered pizza and a movie

  16. Blockbuster Inc. (Present) MARKET RESEARCH

  17. Research Methods Survey -Distributed online -89 responses -Non-random, non-representative sample

  18. Accuracy and Distribution Age Between 18 and 77 Mean: 31.55 Median: 22 Mode: 19 (25.33%)

  19. Target Market Research • Expected delivery price as a function of age • Not significant (P = 0.2902) • Likeliness to use service as a function of age • Not significant (P = 0.8045) • Likeliness to order food and movies simultaneously as a function of age • Significant, not descriptive • β = -0.0215 • r2 = 0.0964 • Se = 1.10

  20. Profitability Research • Willingness to pay • Average: $6.73 • 95% CI: $5.83 - $7.63 • Likeliness to use service • 78.67% indicated they are interested in the service

  21. Blockbuster Inc. (Future) BLOCKBUSTER DELIVERS

  22. Website Integration

  23. Full Recoupment of Sunk Costs Achieved in 7th quarter

  24. Cost Analysis

  25. ?s

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