COURSE: BA2, GROUP C.
* SAMI ELIAS KIBUTA (L0796AAAA00211)
* MOHAMMED ABUL KAISAR (L0798MHMHO211)
* FATMA ABDULRAHMAN MOHAMMED (L0809LMLM0211)
* NISANTHINI SIVASELVAM (L0818KDKD0211)
MODULE: MARKETING MANAGEMENT
LECTURER: LUISE HUNT
Table of Contents
I.MARKETING PLAN SUMMARY4
II.GENERAL COMPANY DESCRIPTION4
III.MARKETING ENVIRONMENT AND SWOT ANALYSIS5
V.STP STRATEGIES (Segmenting, Targeting and Positioning)6
VI.MARKETING AND THE 7 Ps11
VII.CONTROL AND EVALUATION16
I. MARKETING PLAN SUMMARY
This marketing plan aims at providing the best strategies and tools that Blockbuster can use to ensure market growth and success in the future. The changing environment of the video rental business has been considered and therefore the solutions have been tailored to match this environment and are flexible and up to date with the market conditions. If the organisation exercises a proper execution of the plan, growth and success in the future are guaranteed in the perfect time.
II. GENERAL COMPANY DESCRIPTION
Blockbuster is a worldwide organisation that is engaged in video rental services. It operates in more than 20 countries but more heavily in the United States. Its stores are both franchise and corporate owned making it a business that can be found almost anywhere in the countries that it operates. As of January 2009, it operated more than 7,000 stores and reported the revenue of $5.29 billion in 2008. The Ascent:
Blockbuster Inc., originally named Cook Data Services, was founded by David and Sandy Cook in 1982 and its first video store was opened in 1985 in Dallas, Texas. By the early 1990’s, Blockbuster had experienced heavy expansion by opening additional corporate owned stores, franchising, and buying up local video stores. After saturating the national market, it expanded to the international market starting with the UK. The Descent:
Blockbuster started to suffer during the late 1990’s to the early 2000’s. The major reason behind this was the competition that arose from new and more innovative video rental businesses, especially Netflix, which surfaced with better ways for customers to access videos. The most important tool that Blockbuster failed to pick up early enough was the internet and the potential it held in expanding its business. Blockbuster has finally sold its Assets to Dish Network Corp. (DISH) almost a year after filing for bankruptcy for $320 million. DISH is the second-largest satellite TV company right behind DirecTV. Due to the fact that Blockbuster is now under a parent company that has substantial financial strength, it can now exercise endless freedom in terms of innovation and developing new and better marketing ideas that will strengthen the grip it once had.
III. MARKETING ENVIRONMENT AND SWOT ANALYSIS
Given the current condition that Blockbuster is in, it is important to realise that significant changes need to be made to revive its energy. INTERNAL| STRENGTHS: * It is a brand that many are already familiar with * Operates globally * Has discarded late fees * Apart from movies, has a selection of video games * In partnership with movie studios such as Sony Pictures Home Entertainment * Experienced * Multiple delivery methods * Enhanced product availability| WEAKNESSES: * Brand losing grip and market share * Slow response to market changes * Inefficient CEO (Jim Keyes) * Downgraded default ratings * Breach of privacy lawsuit * Presence in only DVD segment * Watch Instantly feature only allows a small selection of DVDs| EXTERNAL| OPPORTUNITIES: * Online access for customers (efficient use of the internet) * Phone App for Smartphones * Cut costs and provide lower prices to strengthen competition * Launch of BLOCKBUSTER OnDemand, Kiosk, by-mail,...