Redbox Current Situation
Current Situation Redbox is leading the way in the premier industry of DVD rental kiosks. With Coinstar as its established parent company, Redbox is currently surpassing its competitors with its number of self-service kiosks. Redbox’s growing popularity is facilitated by its physical distribution, which places the kiosk in high traffic locations such as Wal-Mart, Kroger, McDonalds and Walgreens. Due to Redbox’s standing as the progressive option for DVD rental, its decision to target the 18-24 year old in household’s demographics.
This demographic embodies the idea of innovation, experimentation, and dependency on technology, all of which are imperative to transform an introductory product into a nationwide brand. The following report provides secondary and primary research in order to construct an accurate glimpse of Redbox and its emergent status within the 18-24 year old target market of the DVD rental industry. This report includes the description and results of eighty self-administered surveys completed by samples of the target market.
Based on an analysis of these results, the report concludes with recommendations designed to assist Redbox in more effectively reaching its 18-24 year old target market. This targeted market share common interest such as hobbies, taste in movies, and games they play. 63% of the family oriented People that range from 33-44 have at least one child, 51% have a house hold of at least four people. The primary market is Low income –Middle Class, $30-60k whether in the City or Suburbs. Redbox targets people with the same motivations and aspirations living a comfortable life with lots of family security.
That cares about financial security, safety, social etiquette, time, and trust. Their lifestyle is slightly conservative and old-fashioned. When it comes to education levels 43 percent of Redbox target market goes to people with a college degree. 44 percent goes to people without one and 12 percent goes to student in graduate programs. Redbox’s secondary target market is gamers. The age group includes the people of the ages of 18- 34 with the education levels of college students and graduates. The type of income they would have to make is middle class so that would be a total of around $50- 100k.
It is targeted by the Y generation living in a city area. Redbox’s motivation is to have a sense of accomplishments and social recognition. They care about the social involvement, trying new things, being efficient and progressing. Redbox are also willing to explore the new media and innovate in technology as well. When it comes to the product, because Redbox does not have too many games to choose from, the product usage is low and is rental occasionally to none. The benefits of renting games from the box are cheap, convenience, easy and quick.
Now and days there are so many different types of game stations like the Xbox 360, PS3, PSP and many more and the more updated your system is the more expensive the games are. Wal-Mart is a good place to buy games for the cheapest price possible when a new game comes out but most of the time when a game is outdated that is when you have to go to GameStop, where the games are expensive. At GameStop it is possible to buy and trade in games but a lot of times they do not give you a good deal for your traded in game.
That is when the creation of Gamefly was invented and gave gamers more choices, better prices and easier ways to getting games for every PlayStation out there. Redbox saw how successful Gamefly was and decided to give them a run for their money. Unlike Gamefly, with Redbox there are no hidden fees and no membership, therefore you do not have to pay monthly for games and the game rental are cheap. One thing about Redbox, unfortunately, is the fact that they do not have too many movies to choose from which can really be irritating to a real gamer.