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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. 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
Promotion Ad
Blockbuster Inc. (Future) MARKET SOLUTION
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
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
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
The pizza/movie delivery option is more convenient and faster than either by-mail or retail distribution.
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
Blockbuster Inc. (Present) MARKET RESEARCH
Research Methods Survey -Distributed online -89 responses -Non-random, non-representative sample
Accuracy and Distribution Age Between 18 and 77 Mean: 31.55 Median: 22 Mode: 19 (25.33%)
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
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
Blockbuster Inc. (Future) BLOCKBUSTER DELIVERS