BlockBuster (Streaming service) Business & Marketing Term Paper

Blockbuster Marketing Plan
Name
Institution affiliation
Blockbuster Marketing Plan
Executive Summary
The marketing plan is to offer workable strategies that will be used to regain the Blockbuster Company. Considering the firm is determined to grow steadily, young to middle-aged youths between 18- 40 years have been chosen as the target market. Following that move, the corporate seeks to introduce new online services as well as offer incentives to attract more consumers. Additionally, it vows to incorporate the following; viable marketing strategies, efficient distribution plans, practical promotional techniques and use a unique value proposition to grow their market quickly. Despite the underlying plans, the company is experiencing some challenges such as fierce competition from other sources such as Netflix, retailers, and pirates download games and movies, then sell them as bootleg copies hence; affecting the market place. Therefore, if the firm provides rental movies at monthly subscription, moves into electronic distribution, enable the availability of television programs that can be accessed online and, merge with other movie studios then there is a high chance it is going to survive.
I. Introduction
Originally, Blockbuster began in 1985 as a video rental store, and its founder was David Cock, a prominent computer programmer at the time CITATION RDu08 \l 1033 (Ireland, Hoskisson, & Hitt, 2008). Following his background experience on software services, Cock became innovative hence; started to supply films for his clients and, within a year he managed to establish eighteen more stores a move which led to Blockbuster early success (Davis and Higgins, 2013). Despite the progress, the company experienced financial constraints, and it was at this point that it attracted more investors such as Wayne Huizenga who acquired Blockbuster Entertainment. Later in 1987, two other investors who brought company shares worth $18.6 million joined Huizenga, and after a year Blockbuster expanded extensively becoming a leading company globally CITATION RDu08 \l 1033 (Ireland, Hoskisson, & Hitt, 2008). By 1990’s, the video industry market became saturated, and with fears the firm will be overthrown by new technologies, the company opted to unite with peripheral industries such as Music plus, Sound warehouse and Erol (Davis and Higgins, 2013). However, these efforts were short-lived when Viacom Entertainment joined Blockbuster. After seven years, the company’s value reduced drastically by half, and this was due to Viacom failure to assist the firm transition from renting movies into CD ROMs and books.
Apart from loses, more concerns were raised including a slowing market and operational issues hence after few years the firm decided to rebrand itself and the stores as Blockbuster, Inc. (Davis and Higgins, 2013). Additionally, in an attempt to improve business, John Antioco took over as the CEO, and the company chose to shift its headquarters from Fort Lauderdale to Dallas. Following Antioco’s leadership, new changes were introduced whereby he began new distribution stores, minimized employees, and reduced expansion in an effort to solely focus on video rentals. Although positive results were realized, the effect did not last as the company made huge mistakes in respect of innovation and new competitors.
Following the disappointing outcome, Viacom decided to sell its few shares before exiting the company. By the end of 2004, the firm had lost approximately $900 million in spite of a $5.9 billion turnover. Introduction to online and subscription services were some of the challenges that posed a treat to Blockbuster. Not only did the company start by-mailing subscription when it’s late but also, it continued to charge both monthly and late fees, while other competitors only asked for a flat monthly fee. Furthermore, even after replacing Antioco with Jim Keyes and Michael Kelly as the CEOs, Blockbuster’s competitors such as Netflix continued to perform better and had a good clientele base (Davis and Higgins, 2013). Up to date, only one store is still running in Bend, Oregon, a clear indication Blockbuster is still struggling with bankruptcy
The company demonstrated good marketing strategies whereby in the 2000’s, after Viacom exit, the firm decided to rebrand itself; an important aspect in marketing as it created a platform to attract new potential clients and, showed existing competitors and customers that the company had evolved. Again, the firm took the initiative to establish new distribution stores to increase sales and make it profitable CITATION RDu08 \l 1033 (Ireland, Hoskisson, & Hitt, 2008). After being threatened by new technologies, Blockbuster acquired other smaller competitors to maintain a strong brand-identity. Moreover, the company embraced by-mailing subscription on the realization they would lose their clients to their main competitors.
From the above history, Blockbuster’s primary objective was to strive to work with strategic leaders to assist the company achieve its business goals, solve complex challenges, and ensure it remained a dominant business in a competitive world CITATION RDu08 \l 1033 (Ireland, Hoskisson, & Hitt, 2008). Consequently, the company had its own strengths and weaknesses, which helped to determine whether its goals were achieved, or not. First, the company had diversified its businesses across the globe. By August 20l0, it had approximately more than 3000 operating stores providing movies and games both for renting and selling (Davis and Higgins, 2013). Availability of these stores gave the firm an advantage over its competitors as it released more upcoming videos hence; higher sales. Secondly, Blockbuster was a famous firm especially in the video rental industry; therefore it stood a chance to gather more customers. Additionally, it had software that tracked customer’s transactions that was used during marketing.
On the other hand, the company had its own weaknesses. One, despite its numerous stores worldwide, customer service differed; therefore poor service in one center could have devastating effects on the rest. Again, employing a series of different CEOs signified that the company lacked good strategy to handle its challenges. Following the evaluation of the above strengths and weaknesses, Blockbuster continued to respond to its challenges. Firstly, the firm minimized general expenses including staff numbers. As Davis & Higgins (2013) explain, in 2009, the company reduced its administrative expenses by $300 million. Similarly, in the same year, it eliminated approximately 1,061 unprofitable private operated stores in a move to save the company from losses. Furthermore, it offered Canadian studios having assets, with a security interest in return of improved credit conditions.
II. Marketing Plan
To survive in the industry, Blockbuster need to change the way it is handling their business and, focus on better technological innovations. Today, they should prepare to move from brick and mortar stores and command an online presence to stay on top of the game. Therefore, the company can be revived using the following ways; one, since it continues working in conjunction with other studios to produce movies earlier than their competitors, at present, it would be more convenient if they shift into different fields such as electronic distribution CITATION Smi09 \l 1033 (Smith, Kalu, Citro, & Aono, 2009). This way, customers are going to use the Internet to download movies instantly, and from the comfort of their home.
Secondly, there is a need for the company to begin providing television programs that can be downloaded and accessed at any time so as to be at per with other firms such as satellite companies and cable providers. Thirdly, the...